Sainsbury's announces job cuts amid move to maximise power of its data and retail technology

Sainsbury’s has announced plans to restructure its technology team and Argos delivery network, with the aim of creating more separation between the two businesses.

The move will involve the UK grocery giant cutting 300 head office jobs, most of which will be in technology and data, where it its “consolidating routine reporting tasks” and creating dedicated teams for Argos and Sainsbury's.

Local delivery hubs for Argos will be overhauled, with teams’ shifts being changed so they are working more regular hours with less overtime. There will also be changes to its store leadership, creating four new regional roles for the retailer's convenience stores.

Sainsbury's is moving into to the third year of a restructuring initiative, which it announced in February 2024 with plans to target £1 billion in cost savings.

A spokesperson said: "As we gear up for year three of our next level plan, we're strengthening our focus behind both Sainsbury's and Argos. By maximising the power of our data and technology, we're freeing up our teams to concentrate on what matters most - delivering great food, brilliant service and fantastic value for our customers."

Argos and JD.com

Last year, Sainsbury's confirmed media reports that it was in talks with Chinese e-commerce giant JD.com over the sale of Argos, which it bought for £1.1 billion in 2016.

Argos is the UK’s second largest general merchandise retailer, with the third most visited retail website in the UK and over 1,100 collection points.

Sainsbury's, which is Britain’s second largest supermarket after Tesco, has been ramping up its focus on groceries since Simon Roberts became CEO in 2020.

In a statement posted online, it said: “We are committed to delivering the strongest and most successful future for Argos customers and colleagues and the group’s ‘More Argos, more often’ transformation strategy is delivering solid progress.”

It added: “A transaction with JD.com would accelerate Argos’ transformation. JD.com would bring world class retail, technology and logistics expertise and invest to drive Argos’ growth and further transform the customer experience. The terms of any possible transaction would include commitments from JD.com in relation to Argos for the benefit of customers, colleagues and partners.”

It concluded: “No agreement has been reached and there is no certainty at this stage that any transaction will proceed. A further announcement will be made if and when appropriate.” 

Talks quickly broke down, however, with Sainsbury’s stating: “JD.com has communicated that it would now only be prepared to engage on a materially revised set of terms and commitments which are not in the best interests of our shareholders, colleagues and broader stakeholders. Accordingly, we have now terminated discussions with JD.com.”

2026 RTIH Innovation Awards

Grocery retail will be a key focus area at the 2026 RTIH Innovation Awards.

The awards are now open for entries and celebrate global retail technology innovation in a fast moving omnichannel world.

Our winners will be revealed at the 2026 RTIH Innovation Awards Ceremony, taking place at The HAC in Central London on Thursday, 15th October.

Check out our 2025 winners here.

Our 2025 hall of fame entrants were revealed during a sold out event which took place at The HAC on 16th October and consisted of a drinks reception, three course meal, and awards ceremony presided over by award winning comedian, actress and writer Tiff Stevenson.

In his welcome speech, Scott Thompson, Founder and Editor, RTIH, said: “This is the awards’ fifth year as a physical event. We started off with just 30 people at the South Place Hotel not far from here, then moved to London Bridge Hotel, then The Barbican, and last year RIBA’s HQ in the West End.”

“But I’m conscious of the fact that, to quote the legend that is Taylor Swift, You’re only as hot as your last hit, baby. So, this year we’ve moved to our biggest venue yet, and also pulled in our largest number of entries to date and broken attendance records.”

He added: “This year’s submissions have without doubt been our best yet. To quote one of the judges: The examples of innovative developments across both traditional and digital retail spaces were truly remarkable.”

Congratulations to our winners, and a big thank you to our sponsors, judging panel, the legend that is Tiff Stevenson, and all those who attended our 2025 gathering.