J Sainsbury (LON:SBRY) is set to axe more than 1,000 jobs at its head office, The Telegraph has revealed. The move is part of a £500-million cost-cutting drive at the blue-chip supermarket.
Sainsbury’s share price has been little changed in London this morning, having inched 0.07 percent higher to 252.80p as of 08:26 BST, slightly underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.25 percent higher at 7,530.48 points. The group’s shares have added just under 10 percent to their value over the past year, and are up by a little over one percent in the year-to-date.
The Telegraph reported over the weekend that Sainsbury’s had brought in a team of top consultants from McKinsey at its headquarters to draw up a staff reduction plan. The exact number of job losses is expected to be announced next month.
The blue-chip group employs 3,000 staff outside of its stores, including at its Holborn base in London. It has a separate human resources centre in Manchester, an IT team in Walsgrave, Coventry, and a banking division in Edinburgh.
The job cuts will come after Sainsbury’s announced earlier this year that it was slashing 400 jobs, with a further 4,000 employees facing major changes to their working hours, as part of a shake-up of night shift work at 140 stores.
The 15 analysts offering 12-month price targets for Sainsbury’s for the Financial Times have a median target of 260.00p on the shares, with a high estimate of 350.00p and a low estimate of 200.00p. As of August 4, the consensus forecast amongst 20 polled investment analysts covering the blue-chip supermarket advises investors to hold their position in the company.