Sainsbury’s is cutting 300 head office jobs as it restructures its technology team and Argos delivery network, creating more separation between the two businesses.

The London-based retail group said most of the job cuts would be in technology and data, where it was “consolidating routine reporting tasks” and creating dedicated teams for Argos and the supermarket.

The changes also include restructuring the local delivery hubs for Argos, where teams’ shifts will change so they are working more regular hours with less overtime.

Regional store directors for the Sainsbury’s Local convenience store chain are also being introduced to help drive that part of the business.

The latest changes come after Sainsbury’s decided to invest more in technology to improve efficiency at its business, including AI forecasting tools and warehouse robotics.

Major supermarkets are using technology and other changes to keep down costs amid heavy competition on price as ailing Asda, the UK’s number three supermarket chain, attempts to turn around its fortunes with price cuts.

The discount grocers Aldi and Lidl also continue to open new outlets in the UK, putting pressure on the major traditional grocers.

Tesco last week said it would cut almost 400 jobs in a restructure of the way it operated in-store bakeries.

A spokesperson for Sainsbury’s said: “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.”

The company said the changes affected less than 1% of its 140,000 workforce.

Argos, which Sainsbury’s bought in 2016, has struggled since the Covid pandemic, with the group blaming “significant headwinds” from weak consumer confidence, heavy online competition and widespread discounting for a fall in sales over the all-important Christmas quarter.

The UK’s second-largest grocer increased sales by 3.4% at its supermarkets in the three months to 3 January but Argos sales fell 1% in the period.

The poor performance at Argos has prolonged speculation that Sainsbury’s will aim to offload the retailer, which was the target of an approach from the Chinese group JD.com in the autumn.