Sainsbury's boss Mike Coupe has announced plans to step down as the grocer's chief executive, just hours after confirming hundreds of job cuts.

After almost six years as in the role and fifteen years working for Sainsbury’s, Coupe will retire in May 2020.

Sainsbury's chairman Martin Scicluna, said: "Mike has spent more than fifteen years working for Sainsbury’s and he has added enormous value to the business, to our colleagues and to our shareholders over that time.

"The Board and I are very grateful to him for his service and we look forward to continuing to work together until the AGM. I know that Mike will continue to be dedicated and passionate about the business throughout this time.

The supermarket's retail and operations director, Simon Roberts, will replace Coupe's position on June 1, 2020 on a salary of £875,000. Roberts has previously worked for both Boots and Marks & Spencer.

Speaking on the decision, Mike Coupe added: "I feel very privileged to have spent almost six years running Sainsbury’s, in a period that has been the most challenging and competitive of my 35 year career in retail.

"Sainsbury’s is a very different business today to the one I took over in 2014. I have focused on setting the business up to deal with the strategic challenges of our industry.

"I am proud that almost 20% of our total sales now come from our online channels and that we are becoming one multi brand, multi channel business, able to continue to evolve and adapt with customers’ ever changing needs.

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"Adding Argos and Nectar to the business improves our ability to make shopping increasingly convenient for customers and to reward them for their loyalty. We have also been focused on investing in value so that customers feel confident they are getting quality food at great prices when they shop with us."

Under the terms of his exit, Coupe has agreed to waive any entitlement to bonus and shares for the 2020/21 financial year. 

On Tuesday, Sainsbury's announced plans to axe hundreds more management jobs as part of its merger with Argos.

The supermarket said it's looking to further integrate its head office functions at both Sainsbury's and Argos – including commercial, retail, finance, digital, technology and human resources departments.

While not giving the exact number of positions lost, Sainsbury's said it expected "hundreds" of roles would go.

Coupe told staff: "We have to adapt to continue to meet the needs of our customers now and in the future and, while change can be hard, it's also necessary."

He added: "We already have a sense of momentum across the business and can accelerate this by streamlining our structure and responding to customer needs more quickly.

"Truly integrating our business also unlocks efficiencies that we can reinvest in the things that matter most to our customers."

Sainsbury's and Argos have head office functions across London, Milton Keynes, Edinburgh, Manchester and Coventry.

The group stressed the job cuts are part of previously announced plans to save £500million in costs.

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