A series of “people” management roles within employee engagement, recruitment and payroll are set to be eliminated, with sister title The Grocer reporting that more than 200 members of staff will be made redundant.
The news comes on the heels of Sainsbury’s announcing its own plans to cut 3,000 jobs and close its remaining cafes.
“We have recently carried out a review of our People structure to ensure we are offering our stores and sites a timely and consistent service,” a Morrisons spokesperson said.
“We are therefore proposing to remove the roles of Regional People Manager, Store People Manager and Case Specialist from our structure, meaning colleagues in these roles are being placed at risk of redundancy.
“The new structure will consist of a number of new central roles to support our supermarkets directly along with central HR support and additional employee relations roles.”
The spokesperson noted that the decision is not yet final and remains subject to a 45-day consultation period.
Morrisons currently employs more than 118,000 people across its 497 stores, offices and distribution centres. According to Kantar, it is the UK’s fifth largest grocer with a market share of 8.6%.
The retailer also owns Rathbones bakery, which it has agreed to keep open at reduced capacity following negotiations with representatives from the Bakers, Food and Allied Workers Union (BFAWU).
The site remaining open means that 138 jobs will be retained, although 270 former employees have agreed to a voluntary redundancy package.
‘Budget reaction’
Kirk Brazier, who works as growth director at ESA Retail, argued that the announcements at both Morrisons and Sainsbury’s have likely come in response to the Budget, where the government lowered the threshold at which businesses start paying National Insurance on worker pay.
Morrisons CEO Rami Baitiéh said in December that the Budget would bring about an “avalanche” of costs and urged the government to stagger the implementation of changes.
“The recent news around the layoffs at Morrisons and Sainsbury’s is understandably difficult for all concerned,” Brazier told Food Manufacture.
“Though there may be some light at the end of the tunnel for the retailer and employees alike. Both companies appear to be making adjustments to adapt to a changing retail landscape, which they will hope will help position them for greater long-term sustainability and growth.
“Restructuring often creates opportunities for innovation, investment in new areas, and the chance for employees, to pursue fresh career paths or training programs that align with emerging business needs.”
