Sainsbury’s issues big update after announcing plans to axe key services from stores and cut 3,000 jobs

SAINSBURY’S has issued a big update after confirming plans to axe key services from stores and cut 3,000 jobs.

One of the UK’s largest supermarkets has confirmed when it will shut remaining patisserie, hot food and pizza counters at its larger shops.

Getty

Sainsbury’s is ditching a number of counters from its branches[/caption]

In its latest financial results this morning, the retailer said the counters will shut “by early summer“.

The most popular items sold from these counters will be moved to aisles in stores.

The retailer also said, from autumn, new “On the Go” hubs offering hot food will be rolled out across stores.

We have asked Sainsbury’s the exact date these hubs will open and when the remaining patisserie, hot food and pizza counters will shut and we will update this story when we’ve heard back.

Sainsbury’s first announced plans to axe its remaining patisserie, hot food and pizza counters across larger stores in January.

Counters in smaller Local stores are not affected.

Sainsbury’s also said it would shut 61 existing in-store cafes and cut 3,000 head office staff.

The supermarket said the decision to axe the cafes was taken as less of its loyal customer base was using them.

The Sun exclusively revealed earlier this month the cafes’ final day of trading was April 11, just six days ago.

However, it is not yet clear when the 3,000 head office staff will lose their jobs.

Around 20% of senior management roles will be cut at the supermarket giant as part of plans to focus on fewer, bigger roles and to simplify its head office and management teams.

Simon Roberts, Sainsbury’s chief executive, said in January the supermarket was facing a “challenging cost environment”.

This comes despite its latest results published today revealing strong trading in the 2024/25 financial year.

Retailer underlying profit was up 7.2% to £1.03billion, with strong Sainsbury’s sales offsetting lower profits at Argos.

However, Sainsbury’s is also trying to cut costs by £1 billion-a-year, and cut about 1,500 roles in 2024, mostly from a contact centre in Cheshire.

The company said in late 2024 that tax increases from the October Budget would hit it with an extra £140 million in costs.

The Government hiked employer National Insurance contributions from 13.8% to 15% this month.

The threshold at which bosses will have to pay tax on workers’ pay has been lowered from £9,100 to £5,000.

Meanwhile, the national minimum wage has also been hiked, piling added pressure on employers.

SUPERMARKETS AXING SECTIONS

Sainsbury’s is not the first supermarket to announce a major overhaul of its stores in recent years.

Morrisons has this year said it will shut 52 cafes and 17 convenience stores and axe a number of in-store services.

The shake up puts around 365 workers at risk of redundancy.

All of the 17 convenience stores closed yesterday, apart from one in Haxby which will shut on May 14.

Rami Baitiéh, chief executive of Morrisons, said the plans would allow the supermarket to invest in other areas of the business.

In 2023, Tesco ditched its delis and hot food counters after the retailer said it had seen a drop in demand.

The move to close the underused counters started in 2019, when Tesco also said it would axe 9,000 jobs.

Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.

Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories