Morrisons to cut 2,600 jobs

By Erin Smith

Published: 19 June, 2014

Morrisons is planning to cut 2,600 jobs as a result of a new management structure in stores.

Morrisons has trialled the structure on different sites since last year and found it led to better performance. The job cuts will focus primarily on reducing layers of management including department managers and supervisory positions in stores. Currently, some stores have up to seven tiers between the shop floor and the store manager, according to a Morrisons statement.

As for how the proposed cuts might affect the company's beer, wine and spirits category, the retailer would not comment other than to say it has "entered into consultation with colleagues at supervisor and manager level in stores". The recent closure of its Morrisons Cellar site, which ceased trading after being merged into the Morrisons.com site at the start of June, led to four roles being made redundant.

Following the closure of the Morrisons Cellar site Steve Mosey, category director for beers, wines and spirits, said the move was designed to "continually improve our online wine proposition" and streamline the shopping experience.

Morrisons Morrisons is cutting 2,600 jobsIn a cull of mid-management, supermarket retailer Morrisons is cutting 2,600 jobs after a series of poor results and amid its guaranteed price cuts.

In a cull of mid-management, supermarket retailer Morrisons is cutting 2,600 jobs after a series of poor results and amid a series of guaranteed price cuts.

The announcement comes after Q1 results released last month showing a 7.1% drop in like for like sales, and a 4.2% decrease in total sales. Despite the troubling figures in March of this year the retailer announced it plans to deliver over £1 billion in savings over the next three years and cut the cost of 1,200 products.

Morrisons rivals including Tesco and Sainsbury's, are struggling across the board as low cost competitors Aldi and Lidl have been growing their market share. Equally, Waitrose has strengthened its niche position as an upmarket store and increased its market share by focusing on more premium goods.

Last month the supermarket announced it would deliver chilled wine direct to consumers' doors as part of changes being made to its online business, in a first for the grocery trade.