Sainsbury’s puts 300 jobs at risk amid head office restructure

Dan Coatsworth, head of markets at AJ Bell, said: “Potential job cuts from one of the UK’s biggest grocery names is sad news for affected workers.

“Companies across most industries are under pressure to cut costs and become more efficient, and grocery firms are in the thick of it.

“Grocery firms make small margins on the products in shopping baskets, and they are constantly being pushed to offer better value than competitors.

“Sainsbury’s is forecast to make £704 million pre-tax profit in its current financial year, but that hasn’t stopped management from announcing restructuring plans.

“People working behind the scenes on tech and data could be affected as management rejig teams who work for the group and for its general merchandise brand, Argos.

“All signs point towards a separation of Argos from Sainsbury’s as it no longer fits with the grocer’s food-first strategy.

“There was bid interest last year from China’s JD and while that didn’t lead to a formal offer amid a valuation disagreement, the ongoing sluggish performance of Argos means Sainsbury’s might now be more willing to cut ties if someone else throws their hat in the ring.”