More than 3,600 workers at Morrisons have lost their jobs in the past year, as the supermarket giant posted its first annual profit since being taken over by US private equity firm Clayton Dubilier & Rice (CD&R) in 2021.
WM Morrison Supermarkets, the Bradford-headquartered chain reported a pre-tax profit of £2.1 billion for the year ending 27 October 2024, according to newly filed accounts at Companies House. The results mark a dramatic turnaround from the previous year’s £919 million loss — and a further £1.3 billion loss recorded the year before that.
But while the balance sheet has improved, the impact on the UK workforce has been significant. The total number of Morrisons employees fell from 104,819 to 101,144 — a reduction of 3,675 jobs. The cuts affected workers across the business:
- Store staff were reduced from 88,258 to 85,508
- Manufacturing roles dropped from 7,865 to 7,612
- Distribution jobs fell from 5,783 to 5,424
- Head office workers were cut from 2,913 to 2,600
These job losses follow more than 8,800 redundancies made by the company the previous year — an ongoing trend of workforce reductions since the CD&R acquisition.
Revenue for the year declined from £18.3 billion to £17 billion, yet performance in the current financial year has shown signs of recovery. In June, City AM reported a 3.9% increase in like-for-like sales for the second quarter, while total sales rose 4.2% to £3.9 billion. Underlying EBITDA also climbed 7.2% in the first half of the year to £344 million.
In an earlier statement, Morrisons’ Chief Executive Officer Rami Baitiéh acknowledged the ongoing pressures on household budgets. “Against the backdrop of a challenging macro environment, with inflation driving subdued consumer sentiment, value remains at the forefront of customers’ minds,” he said.
He added that Morrisons had worked “with a rigorous focus on price, promotions and meaningful rewards for loyalty” to support shoppers during difficult times.
Despite the return to profitability, the retailer has continued to roll out cost-saving measures. Earlier this year, TWU covered the decision to close over 50 in-store cafés put a further 365 jobs in jeopardy — impacting workers in frontline hospitality roles across the store estate.
Morrisons is not alone in this approach. The supermarket sector across the UK has seen widespread job cuts. In January, Sainsbury’s announced it would cut 3,000 roles and shut down all of its in-store cafés. Tesco also reduced its workforce, making 400 jobs redundant in efforts to streamline operations. Asda, too, announced redundancy plans in a major store shake up.
As more retailers adjust to inflationary pressures, digital transformation, and changing consumer behaviour, workers across the industry continue to face uncertainty. While Morrisons has stabilised its financial position, the continued reliance on workforce reductions is raising concerns about the long-term implications for employment in the sector.
The question now is whether these profits can be sustained without further impacts on the people who keep the business running. As thousands of workers adjust to job losses, it remains to be seen how Morrisons will balance business efficiency with its responsibility to those behind the tills, in distribution centres, and on production lines.
