Sainsbury’s will slash about 500 office roles with a further 650 depot jobs at risk as it seeks to bolster its online business.
The supermarket plans to reduce its office space by at least one floor in Manchester and two floors in London and Milton Keynes. Three other offices around the country will also be affected by the changes.
Most of the jobs at risk affect are in human resources, supply chain and logistics, general merchandise and commercial operations.
It will also shut a warehouse in London that helps send out online orders in June, but the grocer hopes to find jobs for those 650 staff in nearby stores.
The company said that any savings would be invested into its core food operations.
Lockdown triggered a boom in digital orders and a race among grocers to conquer the new market.
Simon Roberts, chief executive, said he plans to create a simpler, nimbler and more efficient business.
He said: “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.”
Roberts said that almost two dozen stores in and around London will expand their teams over the next 12 months to support the boom in home delivery and click-and-collect services.
Sainsbury’s has doubled its online capacity since March last year after lockdown triggered a boom in digital orders and a race among grocers to conquer the new market. It ships out over 850,000 orders every week.
Last month Asda cut thousands of back office jobs to focus on conquering the online grocery market.
Asda expects to axe up to 5,000 staff as part of a drive to simplify the management structure in stores and bolster its online offering. Bosses are also seeking to hire 4,500 staff to pick internet orders.