Sainsbury's has axed 200 of head office and supply chain staff. Another 500 are likely to go before the end of the year.
Managing director Stuart Mitchell insisted the job cuts were part of the three-year recovery programme put in place by Sir Peter Davis, chief executive.
Mitchell said: 'This is in no way a reaction to anything that is going on in the business. It is about trying to make the group more efficient and better able to service the stores and therefore our customers.' The job cuts hit their buying department heavily following the introduction of a new information technology system that has changed the way the group does business. Other areas to suffer include; logistics, auditing and the head office retail team.
Sainsbury's is due to update the market on first-quarter trading on July 23, but rumours are rife in the industry that it has continued to suffer.