Investing.com -- J Sainsbury (LON: SBRY ) Plc, Britain's second-largest supermarket, has announced plans to cut 3,000 jobs and close its remaining cafes as part of an ongoing cost-saving initiative. This move comes in the wake of Labour's budget, which has led to increased revenue demands on businesses.
The job cuts will involve a restructuring of positions at the head office and a 20% reduction in senior management roles, as announced by Sainsbury on Thursday. These cuts will impact approximately 2% of the grocer's 148,000 staff.
About a year ago, Sainsbury announced a plan to save £1 billion ($1.2 billion) in costs. However, following the new UK government's first budget in October, which led to significant tax increases for British businesses, the pace of cost-saving announcements has accelerated. Earlier this month, Sainsbury revealed that it would divide a planned staff wage increase into two parts for the first time, as it deals with the higher costs.
Sainsbury has stated it will attempt to reassign affected staff to other parts of the business. The decision to close the remaining 61 cafes is currently under consultation.
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