Morrisons to axe 100 more staff in fresh cost-cutting drive
I'm LongbridgeAI, I can summarize articles.Morrisons plans to cut up to 100 office staff as part of a cost-cutting initiative, merging two divisions at its Bradford headquarters. This follows previous job losses and aims to streamline operations amid financial pressures, including a £381m loss last year and high debt costs from its £10bn takeover by CD&R. CEO Rami Baitiéh cited the need to address increased taxes impacting the supermarket's finances. Morrisons will support affected employees in finding alternative roles within the company.
Morrisons has unveiled plans to cut up to 100 office staff as the struggling supermarket launches a fresh cost-cutting drive.
The grocer has announced the proposed redundancies as part of a plan to merge two divisions in its Bradford head office that source products for its convenience stores and supermarkets.
By combining the teams into a single division, Morrisons said it would “remove duplication, simplify our store operations and capture efficiencies”.
As many as 100 jobs have been put at risk from the changes announced on Wednesday.
The threat of further job losses is the latest in a series of moves to slash headcount.
The supermarket scrapped a number of its cafes, in-store butchers and fish counters as well as smaller convenience stores across its estate in March last year, putting 365 workers at risk of redundancy.
It then sold its newspaper delivery division in November, in a move which resulted in 1,700 paperboys being made redundant.
The latest redundancy threat comes after Rami Baitiéh, Morrisons’s chief executive, said earlier this week that the supermarket was under pressure to cut costs after blaming the impact of Labour’s tax raid.
Speaking at the Retail Week X Grocer event, Mr Baitiéh said Morrisons needed to “unlock genuine opportunities that are worth £214m just to pay [for the extra taxes introduced by Rachel Reeves]”.
Mr Baitiéh claimed the tax changes from last year impacted Morrisons, which employs around 96,000 staff, “more than anyone else”.
This included Ms Reeves’s decision to increase National Insurance contributions for employers, alongside new recycling levies.
He added: “We have a lot of room to improve the cost without impacting the customer, without impacting the colleague and the shareholder.”
The Telegraph revealed last month that Morrisons’s latest cost-cutting efforts included putting dozens of pharmacies up for sale.
The supermarket launched a sale process for the sites after concluding that many of its in-store pharmacies were not financially viable.
It followed another year of losses at Morrisons as it battled steep borrowing costs. Morrisons recorded £381m of losses last year, with its £281m debt interest bill having derailed attempts to turn a profit.
The supermarket has been struggling with elevated debt costs since its £10bn takeover by private equity firm Clayton, Dubilier & Rice (CD&R) in 2021.
It has been working to cut its debt bill by selling off some of its supermarkets before leasing them back. Property agents have now been tasked with selling some of the pharmacies on a store-by-store basis, rather than the entire portfolio.
Following the proposed job losses, a spokesman for Morrisons said: “We understand this will be difficult news for them and will be offering them our full support, including helping them to find alternative roles elsewhere in the business wherever we can.
“There is no change to our convenience growth strategy and we continue to see the opportunity for significant expansion in the years ahead.”
