Home Money Sainsbury’s axes 3,000 staff in jobs Blood spill as retailers rock rising costs after tax pile-up on Labor budget

Sainsbury’s axes 3,000 staff in jobs Blood spill as retailers rock rising costs after tax pile-up on Labor budget

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Cuts: Sainsbury's said it will cut 20% of senior management roles at its head office and cafes and hot food counters are closing

Two of Britain’s biggest supermarkets are axing jobs in the wake of the budget.

Sainsbury’s announced plans to cut 3,000 staff and warned that ‘difficult decisions’ had to be made as it prepares to deal with a sharp rise in the cost of doing business.

And Morrisons said it would make 200 workers redundant.

The losses fueled fears about Labour’s handling of the economy, following Rachel Reeves’ tax revenue budget.

They came as new figures showed consumer confidence has crashed to its lowest level since December 2023.

“Consumers are losing confidence in the UK’s economic outlook,” said Neil Bellamy, director of GFK, a consumer intelligence company. “People see dark days ahead.

Cuts: Sainsbury’s said it will cut 20% of senior management roles at its head office and cafes and hot food counters are closing

Sainsbury’s, the country’s second largest witness behind Tesco, is to cut 20 per cent of senior management roles at its head office and cafes and hot food counters are closing.

“We are facing a particularly challenging cost environment, which means we have had to make difficult decisions about where we can afford to invest and where we need to do things differently to make our business more efficient and effective,” said boss Simon Roberts.

Retailers sounded the alarm about rising costs in October in the wake of the budget.

Revolution Beauty warned yesterday that its annual sales would plunge after consumers reigned in their cosmetic spending at Christmas.

And Morrisons said it was cutting 201 jobs, including in its recruitment and payroll teams.

It faces extra costs of £75m due to national insurance contributions (NICS) changes, prompting boss Rami Baitieh to criticize the government for adding “insult to injury”.

Businesses from independent traders to national chains are facing a NIC rise in April alongside a barrage of other costs that have been imposed by the chancellor.

This includes inflation increases in the minimum wage and increases to business rates paid on commercial properties.

Tough choices: Sainsbury's chief executive Simon Roberts (pictured) said the supermarket faces a particularly challenging cost environment

Tough choices: Sainsbury’s chief executive Simon Roberts (pictured) said the supermarket faces a particularly challenging cost environment

The cuts at Sainsbury’s are part of a major overhaul to streamline operations as it hands back shoppers to discount rivals.

Last February it said it would cut costs by £1bn over three years so it can reduce prices.

Job losses at the head office will take place in the coming months. Plans include closing its 61 cafes, which most customers do not use.

And it will close its bakery, hot food and pizza counters.

It will also introduce self-service bread cutting machines in another sign that retailers could replace humans with robots in a bid to cut costs.

The latest redundancies come on top of 1,500 job losses last year, mainly from a contact center in Cheshire.

Conservative Party business spokesman Andrew Griffith said: ‘This news from one of Britain’s biggest retailers is devastating but not a surprise.

“Thanks to Labour’s budget, 3,000 jobs will be lost and 3,000 families will suffer without the security of a regular wage.”

Clive Black, retail analyst at Shore Capital, said the job cuts were “a move that is very much in line with our concerns that the UK faces a period of higher unemployment if the government does not make better decisions soon.” “.

Culls Workforce

The UK competition regulator plans to cut 10 per cent of its workforce after a ‘budget error’ caused it to exceed spending limits.

The Competition and Markets Authority (CMA) has started a voluntary redundancy scheme to reduce its headcount by around 100 after overspending in a bid to prevent forced looting.

But certain parts of the regulator, including its mergers and digital markets units, will be protected from any cuts.

It comes after the regulator’s chairman, Marcus Bokkerink, was ousted earlier this week following complaints from businesses that the CMA was stifling economic growth.

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