J Sainsbury (LON:SBRY) looks to restructure senior roles in an ‘efficiency’ drive, placing thousands of jobs in jeopardy, Sky News has revealed. The report comes after FTSE 100 rival Tesco (LON:TSCO) unveiled plans to slash 1,700 roles as it looks to simplify its operational structure.
Sainsbury’s share price has been steady in London in today’s trading, having added 0.35 percent to 257.90p as of 14:10 GMT. The advance is largely in line with gains in the broader UK market, with the benchmark FTSE 100 index currently standing 0.29 percent higher at 7,737.84 points. The group’s shares have lost less than one percent of their value over the past year, as compared with an over seven-percent rise in the Footsie.
Sainsbury’s flags job cuts
Sky News reported today that Sainsbury’s had said that it was consulting on plans which will see the number of senior in-store posts across its larger stores and convenience operations slimmed down and replaced with fewer management roles. Staff will be given the choice of applying for the new roles, accepting a more junior position or face redundancy consultation.
“The proposals will introduce a more efficient and effective structure, designed to meet the challenges of today's retail environment,” Simon Roberts, the company’s retail and operations director, explained, as quoted by the newswire, adding that the group’s intention was “not to reduce overall headcount as a result of these proposals”.
Roberts further noted that the proposals will introduce a more efficient and effective structure and will deliver cost savings.
Analysts on Sainsbury’s
Credit Suisse downgraded its stance on the blue-chip grocer to ‘neutral’ today, lowering its price target on the shares from 295p to 275p. According to MarketBeat, the blue-chip grocer currently has a consensus ‘hold’ rating and an average price target of 255.20p.