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Sainsbury’s restructuring to see contracts of thousands of logistics staff move to DHL, GXO and Wincanton

British supermarket chain Sainsbury’s is set to embark on a significant restructuring that will see thousands of its staff transfer to three well-known logistics companies.

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It is widely reported that the plan will result in 3,000 Sainsbury’s employees having their contracts transferred to Sainsbury’s 3 main logistics partners; DHL, Wincanton and GXO.

In addition to this, it is said that 4,000 staff currently working for DHL, Wincanton and GXO will be moved to one of the other two firms.

The reason for the change is that the supermarket chain will take the various logistics contracts it has across the UK and merge them into 3 contracts, each one of which shall concern specific types of product.

GXO will be responsible for fresh and frozen food warehouses, with Wincanton tasked with transport operations for the majority of Sainsbury’s network. Meanwhile, DHL’s contract covers the general merchandise network (including other retail outlets like Argos). Moreover, the German logistics giant will offer warehousing services and conduct transports for large home delivery items.

Sainsbury’s has said it will work closely with colleagues, unions and partners to prioritise and support those who are impacted by these changes.

“We know these are big, bold changes and we have invested a huge amount of time planning this transformation to make sure it is successful,” said Simon Roberts, Sainsbury’s CEO.

Roberts added:

“We believe our logistics and fulfilment operation will be one of our key competitive advantages in the future and today’s announcement will benefit our whole network through knowledge sharing and increased innovation. We’re confident that these changes will help us continue to invest where it will make the most impact for customers, now and in the future. We understand that this is an important announcement for affected colleagues within Sainsbury’s, Argos and across our logistics partners and we will support them through this consultation process. With these changes, our focus is on improving the service we offer our stores and customers, accessing global expertise, and providing new career paths for the future – no matter which partner our colleagues are working for.”


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