Sainsbury's will cut 1,500 jobs amid a £1bn cost-cutting campaign.

Roles will be cut in the supermarket's bakeries, warehouses and call centers, as well as head office. Photo: Suzanne Plunkett/Reuters

Sainsbury's is poised to cut 1,500 jobs as it presses ahead with plans to cut costs by £1 billion.

Simplification of operations will see roles cut across bakeries, warehouses and supermarket chain stores. call centers, as well as at the head office.

It is part of Sainsbury's efforts to free up cash as it tries to lure shoppers away from rivals.

About 1,500 positions are expected to be lost, although Sainsbury's said these plans are all still subject to approval.

Sainsbury's is expected to lose about 1,500 positions.

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The job losses come after chief executive Simon Roberts unveiled a new company strategy earlier this month, during which he refused to rule out redundancies.

Sainsbury's said it wanted to cut costs by $1 billion pounds. exited the business, on top of the £1.3bn it had already made in the three years to March 2024.

Cost-cutting plans will mean current staff will also be asked to work more flexible hours. Mr Roberts said at the time: «We cannot afford to underperform in our business.»

Mr. Roberts Earlier this month, Roberts revealed the company's new strategy, during which he refused to rule out the possibility of layoffs. Photo: Henry Nicholls/Reuters

The latest changes include a shake-up at Sainsbury's bakeries as the supermarket looks to move to a more efficient way of serving freshly baked food throughout the day.

He said he had begun consultations with in-store bakers. , adding that he «has reassured affected colleagues that he will find alternative roles for them where possible, as he would for any colleague affected by the changes proposed today.»

Other changes include a reduction in roles in the store support centre. However, the plans will affect people in HR and supply chain departments. The company said investments in technology and automation mean it will also need fewer local fulfillment centers, which will impact workers at those sites.

Sainsbury's said it was also making changes to its customer service and told staff at its Widnes contact center that the company had decided to outsource the work to an existing partner.

It said: “The vast majority of affected colleagues will move to its service partner, which is a major employer and offers a range of career development and redeployment opportunities.” «.

It comes less than a week after The Telegraph revealed that Waitrose owner John Lewis is also making changes to its customer service team, with hundreds of staff at third-party service provider Foundever facing redundancies.

Sainsbury&#39 ;s plans to downsize. There has been a shake-up in the state as the company seeks to gain momentum after winning back shoppers from rivals Aldi and Lidl over the crucial festive period.

Sainsbury's has increased its market share, according to the latest data from Kantar this month from 15.2 to 15.6%. pc a year earlier as its sales grew faster than Aldi.

Mr Roberts said: “As we move into the next phase of our strategy, we are making some difficult but necessary decisions.

«The proposals we've spoken to the teams about today are important so that we can better focus on the things that have a real impact on our customers, ensuring we all have good food and creating a platform for growth. I know today's news Our affected colleagues are worried and we will do everything we can to support them.”