Morrisons Plans 2,600 Job Cuts In Shake-Up

Written By Unknown on Selasa, 17 Juni 2014 | 20.14

Morrisons has confirmed plans for 2,600 job cuts as the loss-making supermarket chain battles falling sales and market share.

A statement detailing the changes said the losses, representing 2% of its workforce, would result from cutting tiers of in-store management but improving 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 £1bn over three years.

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

Morrisons has been the worst performer among the big four chains in terms of sales decline amid the tough competition from the discounters, including Aldi and Lidl, though major rivals including Tesco have also endured falling market share.

Morrisons, M local Morrisons now has 117 convenience stores

The chain was slow to commence an online food offering and also lagged its biggest competitors on convenience store numbers.

Former chairman, Sir Ken Morrison, publicly criticised the current management's strategy at the supermarket's annual general meeting just a week ago - reportedly describing it as "bull****".

Morrisons said that while the changes would be painful for its workforce, trials of its planned new management structures had proved a hit with customers.

The statement suggested that some stores currently had seven tiers between the shop floor and the store manager and it hoped to relocate some of those managers who will lose their jobs to new store and convenience operations.

Mr Philips said: "This is the right time to modernise the way our stores are managed.

Morrisons 1 Year Share Price Graph

"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."

The company's share price - which has lost almost a third of its value over the past year - rose 3% in the wake of the announcement.


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