Sainsbury's in Newport is to close its in-store café shortly with the supermarket giant announcing plans to cut more than 3,000 jobs.
Head office and senior management roles are among those affected, the chain said.
The major overhaul would also see the closure of its remaining 61 in-store cafes, including the one currently based inside the Newport store.
Sainsbury's said the cafes were no longer used "regularly" by the majority of customers, with the same issues affecting hot food, patisserie, and pizza counters.
The supermarket said the move was a bid to save money in the face of a "challenging cost environment".
It had previously warned of consequences ahead due to a massive leap in costs from budget tax measures which will hit in a matter of weeks.
Why is Sainsbury's doing this?
All the proposals, Sainsbury's said, were subject to consultation.
But chief executive Simon Roberts said of the plans:
"We are facing into a particularly challenging cost environment which means we have had to make tough choices about where we can afford to invest and where we need to do things differently to make our business more efficient and effective.
"The decisions we are announcing today are essential to ensure we continue to drive forward our momentum but have also meant some difficult choices impacting our dedicated colleagues in a number of parts of our business.
"We'll be doing everything we can to support anyone impacted by today's announcements."
The cuts were revealed despite the company's decision, a fortnight ago, to award inflation-busting pay rises to store workers across the business, which also includes Argos, this year.
That same day, Sainsbury's also revealed a leap in Christmas sales.
Mr Roberts is among business leaders to have publicly spoken out after October's budget put firms on the hook for the bulk of £40bn in tax increases.
He warned then that additional costs would be met with consequences, including higher prices for customers, as the chain did not have the "capacity to absorb" a "barrage of costs".
Sainsbury's, he explained, was facing an additional annual bill of £140m from April to cover the cost of additional employer national insurance contributions alone.
The company currently employs 148,000 people.
Industry bodies have widely warned that higher costs will choke investment and jobs - harming not only the economy but also the very working people the government says it has protected through its additional taxes on business and the wealthy.
The government has consistently argued that the budget tax hikes were a one-off to cover a gaping hole in Treasury coffers left by the previous administration - a claim the Conservatives have denied.
Unite union national officer for food, Paul Travers, said the announcement by Sainsbury's amounted to "corporate greed", saying:
"This is a blatant example of profiteering on the backs of workers and then sticking the knife in.
"Sainsburys should be ashamed of themselves for taking this path.
"Unite will be fighting for our members' jobs during any consultation process and helping them through this difficult time."
Asked how the government would respond to suggestions that layoffs at the supermarket were influenced by the budget, the prime minister's official spokesman said:
"Growing the economy, backing businesses, putting more money in people's pockets are obviously the priority.
"It is only by growing the economy we can fund our public services and raise living standards.
"But as we said at the budget, difficult decisions were needed to restore economic stability, and put the public finances back on to a stable footing following the £22bn black hole, and that was a precursor to driving economic growth."
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