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Morrisons announces corporate restructure with 720 jobs to be cut from HQ

Published:  16 April, 2015

Morrisons announced today that it plans to eliminate 720 jobs at its head office with the drinks team at risk of potential redundancies.

Morrisons announced today that it plans to eliminate 720 jobs at its head office with the drinks teams at risk of potential redundancies.

The drinks teams have been informed that their jobs are in jeopardy, according to a report from Harpers' sister publication Off Licence News.

David Potts, the newly appointed chief executive officer, said the "tough decision" had been made in an effort to better meet customer needs.

He said: "We are focusing on the things that matter to our customers. That means having more of our staff in our stores, improving product availability and helping customers at our checkouts. We believe our customers and our staff will appreciate the improvements."

"To support this, we need a simpler, faster and cost-conscious head office - and that requires some tough but necessary decisions."

The company said it would start a period of consultation about simplifying its corporate management structure that would take a minimum of 45 days to complete. The announcement also indicated that some staff members being made redundant may be offered a role in a Morrisons store, while others may be moved to other areas of the business.

Since 2008, the number of people employed by the company's head office has ballooned, increasing by 50%.

However the news comes less than a year after the company cut 2,600 hundred jobs in a bid to simplify its in-store management structure. The primarily affected staff in stores, and saw a reduction in the layers of in-store managers, including department managers and supervisor positions. 

Morrisons has been battered by the supermarket price wars that have erupted across the UK. Last month Morrisons posted an annual loss of £792m as total turnover fell 4.9% in the 52 weeks ending on 1 February 2015.

MThe changing market share of supermarkets within the UKSource: Kantar WorldpanelThe discounters over the last three years have drastically change the supermarket landscape. Morrisons has lost market share during that period.

According to Kantar Worldpanel figures Morrisons lost 1.6% of its market share, while discounter Aldi has grown its market share by 2.7%.