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    Sainsbury’s to cut over 3,000 jobs as budget tax hikes loom | Money News

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    Sainsbury’s has revealed plans to cut more than 3,000 jobs.

    The supermarket said the move was a bid to save money ahead of a massive leap in costs from budget tax measures, due to come into force within weeks.

    Head office and senior management roles are among those affected, the chain said, adding that the cost-saving drive would also result in the closure of its remaining cafes, hot food, patisserie, and pizza counters.

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    Cafes are due to shut at the following locations:

    Fosse Park, Leicestershire

    Pontypridd, South Wales

    Rustington, West Sussex

    Scarborough, North Yorkshire

    Penzance, Cornwall

    Denton, Greater Manchester

    Wrexham, North Wales

    Longwater, Norwich, Norfolk

    Ely, Cambridgeshire

    Pontllanfraith, South Wales

    Emersons Green, South Gloucestershire

    Nantwich, Cheshire

    Pinhoe Road, Exeter, Devon

    Pepper Hill – Northfleet, Kent

    Marshall Lake, Solihull, West Midlands

    Rhyl, North Wales

    Lincoln, Lincolnshire

    Bridgemead, Swindon, Wiltshire

    Larkfield, Aylesford, Kent

    Whitchurch Bargates, Shropshire

    Sedlescombe Road, Hastings, East Sussex

    Barnstaple, Devon

    Dewsbury, West Yorkshire

    Kings Lynn Hardwick, Norfolk

    Truro, Cornwall

    Warren Heath, Ipswich, Suffolk

    Godalming, Surrey

    Hereford, Herefordshire

    Chichester, West Sussex

    Bognor Regis, West Sussex

    Newport, South Wales

    Talbot Heath, Dorset

    Rugby, Warwickshire

    Cannock, Staffordshire

    Leek, Staffordshire

    Winterstoke Road, Bristol

    Hazel Grove, Stockport, Greater Manchester

    Morecambe, Lancashire

    Darlington, County Durham

    Monks Cross, Huntington, North Yorkshire

    Marsh Mills, Plymouth, Devon

    Springfield, Chelmsford, Essex

    Durham, County Durham

    Bamber Bridge, Lancashire

    Weedon Road, Northampton, East Midlands

    Hempstead Valley, Kent

    Hedge End, Hampshire

    Bury St Edmunds, Suffolk

    Thanet Westwood Cross, Kent

    Stanway, Colchester, Essex

    Castle Point, Essex

    Isle of Wight

    Keighley, West Yorkshire

    Swadlincote, Derbyshire

    Leicester North, East Midlands

    Wakefield Marsh Way, Wakefield, West Yorkshire

    Torquay, Devon

    Waterlooville, Hampshire

    Macclesfield, Cheshire

    Harrogate, North Yorkshire

    Cheadle, Greater Manchester

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    Low retail sales in key Christmas month

    Why is Sainsbury’s doing this?

    All the proposals, Sainsbury’s said, were subject to consultation.

    But chief executive Simon Roberts said of the plans: “We are facing into a particularly challenging cost environment which means we have had to make tough choices about where we can afford to invest and where we need to do things differently to make our business more efficient and effective.

    “The decisions we are announcing today are essential to ensure we continue to drive forward our momentum but have also meant some difficult choices impacting our dedicated colleagues in a number of parts of our business. We’ll be doing everything we can to support anyone impacted by today’s announcements.”

    The cuts were revealed despite the company’s decision, a fortnight ago, to award inflation-busting pay rises to store workers across the business, which also includes Argos, this year.

    That same day, Sainsbury’s also revealed a leap in Christmas sales.

    Mr Roberts is among business leaders to have publicly spoken out after October’s budget put firms on the hook for the bulk of £40bn in tax increases.

    He warned then that additional costs would result in higher prices for customers as the chain did not have the “capacity to absorb” a “barrage of costs”.

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    Sainsbury’s, he explained, was facing an additional annual bill of £140m from April to cover the cost of additional employer national insurance contributions alone.

    Industry bodies have widely spoken of how higher costs will choke investment and jobs.

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