Morrisons cut more than 3,600 jobs as it returned to profit for the first time since a private equity-backed takeover in 2021.
The Bradford-based supermarket giant posted a statutory pre-tax profit of £2.26bn for the year to 29 October 2024, compared to a £1.5bn loss the prior year.
Although the swing was largely driven by a £2.6bn profit on the disposal of 337 petrol forecourts to Motor Fuel Group (MFG) during the period.
Losses before tax from the continuing businesses halved to £538n from £1.09bn the year prior.
The reduction in headcount reflects a combination of factors, including the disposal of its petrol stations to MFG, the closure and restructuring of some manufacturing sites, and in-store productivity changes — which Morrisons says were “largely achieved by natural wastage”.
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The retailer’s revenue declined from £18.3bn to £17bn despite like-for-like sales rising 3.9% and total sales growing 4.2% to £3.9bn in the second quarter of its current financial year. Underlying EBITDA increased 7.2% in the first half to £344m.
CEO Rami Baitiéh said: “Against the backdrop of a challenging macro environment, with inflation driving subdued consumer sentiment, value remains at the forefront of customers’ minds.
“Throughout the first half, we’ve worked hard on helping customers through these challenges with a rigorous focus on price, promotions and meaningful rewards for loyalty.”
Earlier this year, Morrisons also closed over 50 cafes as part of cost-cutting plans, putting 365 more jobs at risk.
Though the grocer is not alone in trimming staff — Aldi plans to cut up to 350 UK head office roles, Sainsbury’s announced 3,000 job cuts and all in-store café closures, while Tesco has made 400 redundancies to simplify its operations.
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