EMCC European Monitoring Centre on Change

Sainsbury's

Company/Organisation:
Sainsbury's

Geographic Location

Country: United Kingdom
Region: East Anglia; East of England

Company

Sector: Retail
Wholesale and retail trade; repair of motor vehicles and motorcycles
47.1 - Retail sale in non-specialised stores

Employment Effects

Announcement Date: 19-10-2004
Planned Job Reductions min: 750
Planned Job Reductions max: 750
Type of Restructuring: Internal restructuring
Planned Job Creation: 3000

Additional Information

The ailing J Sainsbury supermarket is cutting 750 head office jobs to save cash and hiring an additional 3,000 staff to improve service levels in the group's 721 stores. Other moves include halving the dividend paid to shareholders, rolling back plans to sell a wide variety of homewares and re-opening an old depot to help get goods into the shops and ‘save Christmas’. Chief executive Justin King is to plough £400 million of cost-savings into improving food quality and cutting prices as the chain tries to compete with market leaders Tesco and Asda and reassert its position.