LONDON, Jan. 23 (Xinhua) -- Sainsbury's, one of Britain's largest supermarket chains, has decided to cut over 3,000 jobs as part of its restructuring efforts, the company announced on its website on Thursday.
The initiative is part of Sainsbury's "save and invest to win" program, which aims to achieve operating cost savings of 1 billion pounds (1.23 billion U.S. dollars). The retailer intends to reorganize its head office departments, targeting a 20-percent reduction in senior management roles over the coming months to streamline operations and reduce costs.
The announcement came amid sluggish sales growth during the crucial "golden quarter" from October to December. Figures released by the British Retail Consortium indicate that total retail sales grew by just 0.4 percent year-on-year, a figure that remains flat when adjusted for inflation.
Simon Roberts, Sainsbury's chief executive, said in a press release: "We are facing a particularly challenging cost environment, which means we have had to make tough choices about where we can afford to invest and where we need to do things differently to make our business more efficient and effective."
In November, major British retailers warned Chancellor of the Exchequer Rachel Reeves that rising costs could lead to job losses and higher prices. Business leaders raised concerns about a 7-billion-pound increase in annual costs following the new Labour government's budget statement released in October, which raises employer National Insurance contributions starting in April and increases the national living wage by 6.7 percent.
Sainsbury's employs 148,000 people and operates nearly 600 supermarkets and more than 800 convenience stores. (1 British pound = 1.23 U.S. dollar) ■
