J Sainsbury (LON:SBRY) is set to cut up to 2,000 UK jobs as part of a cost-cutting drive, Sky News has revealed. The report follows the latest Kantar data which showed that sales at Britain’s second-biggest grocer had increased in the 12 weeks to October 8.
Sainsbury’s share price has fallen deep into the red in London this morning, having given up 1.37 percent to 244.30p as of 08:33 BST, underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.20 percent higher at 7,531.55 points. The group’s shares have added some four percent to their value over the past year, but are down by more than one percent in the year-to-date.
Pending job cuts
Sky News reported last night that Sainsbury’s had said that it was consulting on a series of measures that would mainly affect human resources and payroll staff. Britain’s second-biggest supermarket wants to remove all HR and payroll clerk roles from in-store completely, with the move hitting around 1,400 people, while a further 600 roles are under threat from a restructuring which would consolidate HR and other support roles across its grocery chain, Argos and Sainsbury’s Bank.
“Following a comprehensive review, we are proposing some updates to our HR structures and systems, as well as changes to a number of other support roles, subject to consultation,” a spokesman for the supermarket told the newswire.
Sainsbury’s move comes as the company looks to free up cash for the ongoing supermarket price war. Kantar Worldpanel reported yesterday that sales at the FTSE 100 grocer had increased 1.9 percent in the 12 weeks to October 8. The group’s market share, however, dipped 0.2 percentage points to 15.8 percent. Rival Wm Morrison Supermarkets (LON:MRW) meanwhile was the fastest-growing ‘Big Four’ grocer during the reported period.