Sainsbury’s has revealed plans to reduce its workforce by approximately 1,500 jobs, pending consultation, as part of a cost-saving initiative aiming to secure around £1bn in savings over three years.

The company disclosed that job cuts would be implemented at its contact center in Cheshire, in-store bakeries, and some local fulfillment centers. Sainsbury’s affirmed that efforts would be made to redeploy some staff members and identify alternative roles “where possible.”

The retailer emphasized that the saved funds would be reinvested in the business. In the announcement, Sainsbury’s stated that “the vast majority” of positions at its Widnes call center would be transferred to its service partner, Careline Services, describing it as a “major employer” providing various career opportunities.

Sainsbury’s detailed its shift towards a more efficient in-store bakery model and its intentions to extend this approach to additional stores. The supermarket explained that a consultation process would be initiated with bakers in these stores.

The company also confirmed job reductions in its merchandise distribution network, signaling increased investments in technology and innovation. This shift is expected to lead to a reduced need for local fulfillment centers.

Simon Roberts, Sainsbury’s chief executive, characterized these changes as the next phase of the company’s strategy to offer value and quality service to customers, acknowledging that they involve “difficult but necessary decisions.” He expressed his understanding of the impact on affected colleagues, pledging support and reassurance.