1,300 jobs lost in 2015 already
The huge price war, in which the (German) discounters are largely defeating the classic (British) retailers, has serious consequences: Sainsbury’s is to cut 800 jobs in its stores to “ensure that stores are better able to respond to changing customer demands”.
These job cuts are on top of the 500 office jobs the company cut at the start of the year. All in all, these cuts are part of a larger restructuring program intended to save the company some 500 million pounds (700 million euro) over the next three years. Those funds will be used to “help fund future investments in areas which really matter to customers – such as service, price and quality”.
Market leader Tesco had also announced it would cut several thousand jobs after announcing an historic 6.38 billion pound loss (an astounding 9 billion euro) for its previous fiscal year, which ended on 28 February. In its previous fiscal year (2013-2014), the number one managed to post a 2.26 billion pound (3.2 billion euro) pre-tax profit.
