Sainsbury’s to Cut 3,000 Jobs and Close Cafés in Cost-Saving Overhaul

The UK’s second-largest supermarket cites rising costs from recent tax increases and inflation as key drivers of the decision.

Sainsbury’s plans to cut 3,000 jobs, including 20% of senior management roles, as part of a £1 billion cost-saving strategy over three years.
All 61 remaining in-store cafés, along with patisserie, hot food, and pizza counters, will be closed following reduced customer use and shifting preferences.
The company attributes the cuts to increased costs from the October Budget, including £140 million in higher taxes and employer National Insurance contributions.
Sainsbury’s recently raised staff wages by 5% in two phases but described the cost environment as particularly challenging for maintaining profitability.
Unions have criticized the layoffs, accusing the company of prioritizing profits over employees, while Sainsbury’s defends the changes as necessary for long-term efficiency.