16th April 2015
Shares in Morrisons dipped on Thursday afternoon after the supermarket group announced it was to cut 720 roles at its Bradford head office.
At its headquarters, where the number of people employed has increased by 50% since 2008, it is starting a 45-day consultation to establish “a simplified management structure”.
By the end of Thursday’s trading session, the FTSE 100 retailer’s stock was down 1% or 2.4p at 210.2p.
In a statement the group added that it was however recruiting 5,000 new staff for in-store roles.
It said that it was “reshaping the way that its business is staffed, investing in new store jobs to deliver better customer service, while also proposing a reduction in head office jobs”.
David Potts, Morrisons chief executive, added: “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.”
Staff members whose role is being made redundant will be offered a role in a Morrison store and some will be redeployed in other parts of the business.
In March, Morrisons reported its poorest annual results in some eight years, where in the 12 months to 1 February, underlying profit before tax nosedived by 52% on the previous year to £345m.