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Morrisons to axe 2,600 jobs in restructure

Bradford-based Morrisons has confirmed plans for 2,600 job cuts as part of a restructuring to combat struggling sales.

The firm says that the changes would modernise the way stores are managed with the aim of reducing in-store management tiers, simplifying responsibilities and improving customer service.

Some Morrisons stores currently have seven tiers between the shop floor and the store manager.

This is the next step in Morrisons’ modernisation programme and the company is well on the way to over-hauling its old systems and infrastructure. The retailer said new smarter systems will make stores simpler to manage and easier to replenish.

Dalton Philips, Morrisons chief executive, said: “This is the right time to modernise the way our stores are managed. These changes will improve our focus on customers and lead to simpler, smarter ways of working.

“We know that moving to the new management structure will mean uncertainty for our colleagues and we will be supporting them through the process.”

From this group Morrisons is proposing to promote 1,000 into new duty manager roles to strengthen the senior management team in each store. Hours would also be re-invested in customer-facing jobs on the shop floor.

Morrisons expects the proposed changes to the management structure will involve around 2,600 redundancies.

However this year, 1,000 jobs will be created in Morrisons M local convenience stores and an additional 3,000 in new supermarkets. Morrisons will look to offer displaced colleagues the opportunity to work in these growing businesses.

The losses representing 2% of its workforce, but the company insisted it could improve customer service at the same time as more staff would be focused on serving shoppers.

The announcement was made as the supermarket combats a flight to discounters with a series of price cuts that will cost it £1 billion over three years.

Earlier this month, Morrisons reported a 7.1% slump in quarterly sales on the back of annual losses of £176 million, which apparently prompted chief executive Dalton Philips to waive his bonus.

In a statement to The Guardian, Joanne McGuinness, national officer representing Morrisons workers for the trade union Usdaw, said: “The next few weeks will be a worrying time for our members in Morrisons and we will do everything possible to support them.

“Our priority will be to safeguard as many jobs as possible, maximise employment within the business and get the best possible outcome for our members affected by this restructuring.”

This was posted in Bdaily's Members' News section by Clare Burnett .