Morrisons plans to cut an additional 100 jobs as part of a new effort to reduce expenses

Morrisons Announces Office Job Cuts Amid Cost-Saving Measures

Morrisons has revealed plans to eliminate up to 100 office positions as part of a renewed effort to reduce expenses. The supermarket chain intends to merge two departments at its Bradford headquarters—those responsible for sourcing products for both its convenience outlets and larger stores—into a single unit.

This consolidation aims to streamline operations, eliminate overlapping roles, and boost efficiency, according to the company. As a result, up to 100 employees could face redundancy following the announcement made on Wednesday.

This potential round of layoffs is the latest in a series of workforce reductions. In March of last year, Morrisons closed several in-store cafes, butcher and fish counters, and some smaller convenience shops, putting 365 jobs at risk. Later, in November, the company sold its newspaper delivery business, leading to the redundancy of 1,700 paperboys.

The current job cuts come shortly after CEO Rami Baitiéh stated that the supermarket is under mounting pressure to lower costs, attributing some of the strain to recent tax changes introduced by Labour. Speaking at the Retail Week X Grocer event, Mr. Baitiéh highlighted the need to find savings worth £214 million to cover the additional taxes brought in by Rachel Reeves.

He noted that these tax adjustments, including higher employer National Insurance contributions and new recycling fees, have impacted Morrisons—employing around 96,000 people—more than any other business. Mr. Baitiéh emphasized that there is significant potential to reduce costs without negatively affecting customers, staff, or shareholders.

Further Restructuring and Financial Challenges

Last month, The Telegraph reported that Morrisons had begun the process of selling dozens of its in-store pharmacies, having determined that many were no longer financially sustainable. This move follows another year of financial losses for the company, which posted a £381 million loss last year, largely due to a £281 million interest payment on its debt.

Since being acquired for £10 billion by private equity firm Clayton, Dubilier & Rice (CD&R) in 2021, Morrisons has struggled with high borrowing costs. To address this, the supermarket has been selling some of its stores and leasing them back, and is now seeking buyers for individual pharmacies rather than selling the entire group at once.

Company Response and Future Outlook

In response to the proposed redundancies, a Morrisons spokesperson stated: “We recognize that this is difficult news for those affected and will provide comprehensive support, including assistance in finding alternative positions within the company wherever possible.”

The spokesperson also reaffirmed Morrisons’ commitment to expanding its convenience store business, noting that the company still sees significant growth opportunities in the coming years.