Morrisons has announced a major restructuring that includes cutting over 3,600 jobs and closing 17 stores. The supermarket's workforce decreased from 104,819 to 101,144 during the last financial year, following a drop in revenue. The closures come amid a cost-of-living crisis in the UK, with inflation at a 30-year high.
The job cuts affected various sectors, including in-store and distribution staff, head office employees, and manufacturing workers. The largest reduction was among on-the-ground staff, with numbers falling from 88,258 to 85,508. The closures culminated in the final store closure in Haxby, North Yorkshire, on May 14.
Additional closures occurred in April, coinciding with the discontinuation of 50 Morrisons in-store cafes, 35 meat and fish counters, and 18 Market Kitchen food courts. The supermarket attributed these measures to the need to reduce costs amidst escalating financial pressures, having reported pre-tax losses of £919 million in 2023 and £1.3 billion in 2022.
Despite these challenges, Morrisons posted a pre-tax profit of £2.1 billion for the 12 months ending October 27, 2024, according to Companies House accounts. This marks the first return to profitability since the company was acquired by US private equity investor Clayton Dubilier and Rice in October 2021. Morrisons also reported a 4.2% rise in like-for-like sales to £3.9 billion in the second quarter.
Chief executive Rami Baitiéh said: 'Against the backdrop of a challenging macro environment, with inflation driving subdued consumer sentiment, value remains at the forefront of customers' minds.' He added that the company has focused on price, promotions, and loyalty rewards. Other grocery chains, including Aldi, Tesco, and Sainsbury's, have also reduced their workforce in response to economic pressures.
