After the announcement that hundreds of jobs are set to be axed, Sainsbury's CEO, Mike Coupe, revealed his plans to step down as the supermarket's chief executive.
This is everything you need to know about the current situation regarding Sainsbury’s job cuts.
‘Hundreds’ of job cuts
Management position jobs are set to be cut in the hundreds as Sainbury’s continues to integrate with Argos, which bought the company for £1.4bn in 2016. The move comes after a similar cull of senior roles took place last year.
A statement from the supermarket said, “Since the start of this financial year (March 2019) Sainsbury's senior leadership team has been reduced by over 20%.
"Bringing together more teams in commercial, retail, finance, digital, technology and HR will lead to a reduction of hundreds of management roles across the business."
Soon to be ex-CEO, Mike Coupe told workers, “We have to adapt to continue to meet the needs of our customers now and in the future and, while change can be hard, it’s also necessary.”
What does this mean for staff?
An exact number of positions set to be cut has not yet been confirmed, but Sainsburys has stated that it would be in the “hundreds”.
According to the government website, workers are normally entitled to statutory redundancy pay if they have been with their current employer for two years or more.
Staff should receive:
Half a week’s pay for each full year you were under 22One week’s pay for each full yeah you were 22 or older, but under 41One and a half week’s pay for each full year you were 41 or older
The length of service is capped at 20 years. You can use the government's online service to calculate your statutory redundancy pay.
You are no longer entitled to statutory redundancy pay if:
Your employer offers to keep you onYour employer offers you suitable alternative work which you refuse without good reasonYou’ve been dismissed for misconduct
CEO stepping down
After 15 years working for Sainsburys and almost six of those years as CEO, Mike Coupe has announced that he will be leaving the position later this year.
Mr Coupe will continue in his role as CEO until the end of May 2020. He will remain a director until 1 June, at which point he will retire from the company altogether.
Retail and Operations Director, Simon Roberts, has been named as Mr Coupe’s successor.
Chairman Martin Scicluna said, “Mike is an exceptional Chief Executive. His knowledge and understanding of the retail sector and customer behaviour is second to none.
“Mike has been bold and ambitious on behalf of our shareholders, customers and our colleagues. Investing heavily in convenience, online and our digital capability, selling Sainsbury’s pharmacy business and acquiring Argos and Nectar have all been sound strategic moves.”