UK supermarket chain Morrisons has reduced its workforce by almost 5,000 roles over the past year as part of an enterprise-wide turnaround strategy led by Chief Executive Rami Baitieh.
The headcount reduction arrived alongside annual financial results showing a pre-tax loss of Ā£629 million before exceptional items, with net debt rising to Ā£7.52 billion. Despite macroeconomic pressures and operational headwinds, annual revenue expanded by 2.8 per cent to Ā£15.7 billion, while underlying earnings held steady at Ā£835 million.
Workforce Adjustments and Operational Impact
The retailer's average workforce contracted from 101,144 to 96,232 employees over the 12-month period, representing a net loss of 4,912 positions.
The workforce reductions comprised:
Store-Level Positions:Ā More than 4,200 shop-floor roles were eliminated, largely driven by in-store service counter closures and natural staff attrition.
Supply Chain and Processing:Ā Additional headcount reductions occurred across the supermarket's manufacturing and distribution divisions.
The operational restructuring forms a central element of Baitieh's strategy to streamline store-level operations, reduce structural overheads, and simplify store processes.
Financial Performance and Debt Profile
While top-line revenue demonstrated growth across core grocery categories, rising debt service costs and operational friction weighed on underlying profitability.
Key financial metrics for the full financial year include:
Total Revenue:Ā Expanded 2.8 per cent year-on-year to reach Ā£15.7 billion.
Underlying Earnings:Ā Remained stable at Ā£835 million, absorbing cost inflation and the financial impact of a cyber security incident.
Pre-Tax Performance:Ā Reported an annual pre-tax loss of Ā£629 million prior to exceptional items.
Net Debt Position:Ā Increased to Ā£7.52 billion as the business manages capital structures following its private equity acquisition.
Turnaround Strategy
The restructuring measures arrive as Morrisons works to regain market share across the UK grocery sector, where discounters Aldi and Lidl have expanded their market footprint.
Under Baitieh's leadership, the supermarket is focusing on core trading principles, enhancing store-level product availability, sharpening loyalty mechanics through the More Card platform, and leveraging its vertically integrated food manufacturing division to improve price competitiveness.
The enterprise continues to execute operational adjustments across its store network and logistics infrastructure to manage its debt profile and stabilise profitability over upcoming trading cycles.
