Supermarket giant Sainsbury’s will slash 500 jobs at head offices across the country including roles at its Manchester and central London Holborn sites.
An online fulfilment centre in Bromley-by-Bow will also be closed in June affecting 650 jobs, although the supermarket said it hopes to redeploy most of the staff to neighbouring stores.
Chief executive Simon Roberts said the savings made from the job cuts will be used to reduce prices in stores and invest in more online facilities.
He said: “Our new plan puts food first and will create a simpler, nimbler and more efficient business.
“The money we save will enable us to invest in what customers really care about – lower prices, exciting new products and the most convenient ways for them to shop.
“I know change is difficult but to do the best job we can for our customers, it is vital that we adapt.
“I understand this will be a very difficult time for affected colleagues and we will do everything we can to fully support them.”
The news comes days after Sainsbury’s confirmed a pay rise for thousands of frontline workers – with many to receive a 3% bonus on top.
From March, the hourly rate of pay for Sainsbury’s and Argos store colleagues will increase to £9.50 – an extra 20p an hour.
Pay for workers in central London Zones one and two will rise from £9.90 to £10.10. It is understood that around 165,000 colleagues will benefit from the increase.
A third ‘thank you’ bonus will also be paid to colleagues working in supermarkets, logistics and customer Careline departments in May, the grocer told The Mirror.
The payment will be based on 3% of annual pay, so a full-time colleague will receive around £530 extra.
Sainsbury’s said it expects to report at least £330million underlying profit before tax in the financial year to March 2021, a year on from the start of the Covid pandemic.
Clodagh Moriarty, retail and digital director at Sainsbury’s said: “In the last 12 months our frontline colleagues have shown outstanding commitment to our customers.
“In recognition of everything they have achieved, we are giving them a pay rise, plus an additional one-off payment.
“I feel so proud and humbled by the dedication our colleagues have shown day in, day out and would like to thank everyone for the part they have played in helping to feed the nation throughout an extraordinary year.”