Morrisons to Cut Over 200 Head Office Jobs in AI Push

Morrisons Announces Head Office Job Cuts

UK supermarket chain Morrisons has announced plans to cut more than 200 head office roles as part of a cost-cutting drive that includes increased use of AI and automation. The cuts affect all functions at its Hilmore House head office and represent around 8% of head office staff.

Affected employees were notified of the restructure on Monday afternoon, and the company has begun consulting with staff, with the first consultation meeting set for Friday.

AI and Automation Cited

A Morrisons spokesperson said the company commenced a long-term programme in 2025 to re-engineer certain business functions, streamline processes and structures, automate a number of manual tasks, and capitalise on the potential of data and AI to improve performance. The spokesperson described the decisions as tough but necessary, impacting head office colleagues, with a number of roles proposed to be placed at risk of redundancy.

The multi-year programme, according to Morrisons, aims to ensure central functions are better placed to serve stores and strengthen the company's ability to deliver for customers in very challenging market conditions.

Second Round of Cuts in Just Over a Month

This marks the second round of job cuts at Morrisons in just over a month. Previously, the supermarket put 100 roles at risk in a restructure of the Morrisons Daily commercial and support teams. Roles in commercial, technical, own brand, marketing, HR, and supply chain are understood to be included in the latest proposals.

It is not yet clear exactly which areas of AI Morrisons intends to invest in most heavily, although the retailer has been increasingly using the technology in supply forecasting. Last September, it also rolled out a new AI-powered category management tool and data platform, More Viu.

Cost-Cutting Pressure and Debt

CEO Rami Baitiéh is under pressure to cut costs to fuel his turnaround plan and pay down Morrisons' £3.1bn debt pile. During January's annual results call, Baitiéh said progress had been slowed by unexpected external cost headwinds, pointing to increases to National Insurance as well as EPR costs. The economic fallout of the Iran war, alongside the risk of higher interest rates, has added further pressure to the private equity-owned supermarket.

Morrisons said it understands this will be difficult news for affected colleagues and will offer full support, including helping them find alternative roles elsewhere in the business wherever possible.

The company operates 497 supermarkets and more than 1,700 convenience and franchise stores across the UK.

Sources

• Morrisons to cut hundreds of head office jobs in AI push | The Grocer
• Morrisons plans to axe hundreds of jobs in AI shake-up | Western Telegraph