Morrisons, one of the UK’s supermarket giants, has recently announced a significant round of job cuts following the government’s Budget announcement in October. The chain, headquartered in Bradford, is planning to eliminate more than 200 roles from its retail people team as part of a broader cost-cutting initiative. Chief executive Rami Baitiéh cited the “avalanche of costs” expected post-Budget as the reason behind this decision. The positions on the chopping block include those in customer experience, employee engagement, recruitment, and payroll. A Morrisons spokesperson mentioned that a review of their people structure led to the proposal to remove roles like regional people manager and store people manager, putting these employees at risk of redundancy. The new structure will introduce central roles to support supermarkets directly along with central HR support and additional employee relations positions. A minimum 45-day consultation process will precede any final decisions about the job cuts.
This move by Morrisons follows similar actions by Sainsbury’s, which recently revealed plans to slash over 3,000 roles and close all remaining in-store cafes. The retail industry had previously warned the government about potential job cuts following the Budget announcement in October. More than 70 businesses, including Tesco, Asda, and Sainsbury’s, expressed concerns to Rachel Reeves in an open letter regarding the expected price hikes and job losses. The letter highlighted a significant change in employers’ national insurance contributions, amounting to £25.7 billion, which is anticipated to lead to job losses and price increases across various sectors. The British Retail Consortium, along with household names like Amazon, Aldi, and Marks & Spencer, signed the letter, emphasising the challenges faced by businesses due to the new costs imposed by the Budget.
The Office for Budget Responsibility estimates that approximately 50,000 jobs could be at risk due to the increase in NICs. When asked about the necessity of job losses to restore stability to public finances, a No 10 spokesperson acknowledged the tough decisions made to ensure long-term economic growth. While acknowledging the government’s focus on fiscal improvement, the letter from businesses underscored the accumulating burden of new costs, making job losses inevitable and price hikes certain. The need for stable economic growth was acknowledged, and difficult decisions were recognised as essential for businesses to thrive in the future.
In response to these challenges, Morrisons and other supermarket chains are restructuring their operations to adapt to the changing economic landscape. As the retail sector grapples with the aftermath of the Budget, businesses are exploring ways to streamline operations and reduce costs without compromising essential services. The shift towards central roles and a revised people structure at Morrisons reflects a strategic approach to navigate the financial impact of recent government decisions. This evolving landscape requires businesses to remain agile and responsive to economic changes, ensuring sustainability and competitiveness in the market.
The announcement of job cuts at Morrisons underscores the ongoing challenges faced by the retail industry in the current economic climate. As businesses adjust to new financial realities, the focus remains on preserving core operations while making necessary adjustments to ensure long-term viability. The consultation process preceding the job cuts demonstrates a commitment to engaging with employees and stakeholders transparently during this period of transition. While the road ahead may be challenging, proactive measures taken by companies like Morrisons signal a readiness to navigate uncertainty and emerge stronger in the post-Budget landscape.