Sainsbury's axes 500 jobs as part of cost-cutting drive

 
Jessica Morris
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Sainsbury's has announced 500 job cuts (Source: Getty)

Sainsbury's has announced plans to axe 500 jobs as part of a cost-cutting exercise, as the UK supermarket battle continues to heat up.

Sainsbury's, which is the UK's second largest supermarket, said the job cuts would be across "all divisions and grades in our store support centres".

A consultation on the job losses will start immediately while the structural changes will take effect from early spring.

It's part of a drive to make cost savings of around £500m over the next three years, as it fights off a supermarket price war and the encroachment of discount supermarkets.

Sainsbury's had suffered amid customers' changing shopping habits and a vastly different supermarket sector. This has pushed it into a price war with big high street competitors such as Tesco and Asda.

It's also facing increased competition from German discounters Aldi and Lidl, which are enticing cash-strapped middle-class shoppers with premium products such as its £11.99 Comte De Senneval champagne.

Last week Sainsbury's reported its worse performance over the Christmas period in a decade. It said the future outlook remained "challenging" amid an uncertain trading environment, food price deflation and price cuts.

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