Morrisons cuts nearly 5,000 jobs as losses mount – report

UK supermarket chain Morrisons reduced its workforce by almost 5,000 roles in the year to October 2025 as the debt-laden supermarket looked to curb rising losses.

Newly filed accounts show average monthly headcount fell 5%, from 101,144 to 96,232.

A company spokesman told the Telegraph that the cuts followed the closure of the newspaper delivery service, changes to the management team, and a scaling back of bakery operations.

He added that there had been no additional redundancy programme and that most of the reduction came from not replacing departing staff.

Store staff numbers accounted for most of the decline, dropping by more than 4,200, while jobs in food manufacturing and distribution also fell.

Despite the decreased headcount, overall staffing costs rose slightly to £2.1bn ($2.84bn), as employer National Insurance and other social security contributions increased by £30m to £172m following the government's tax changes.

The job cuts come as Morrisons works to recover ground lost to discount rivals Lidl and Aldi.

According to the report, Lidl overtook Morrisons in UK market share this year, pushing the retailer into sixth place among Britain's largest grocers.

The chain has faced sustained pressure since its £7bn acquisition by US private equity company Clayton, Dubilier & Rice in 2021, which left it holding significant debt.

Accounts for Morrisons' parent company showed net debt rose to £7.5bn in the year to October 2025, up from £7bn, driven in part by higher store rental commitments.

The group reported a pre-tax loss of £926m, reflecting the impact of a cyberattack and asset write-downs.

Morrisons, which operates around 500 larger stores alongside thousands of convenience outlets, has also been seeking to raise funds from its property portfolio, including talks over a potential £600m sale-and-leaseback deal covering a number of stores.

In May, the company announced the closure of 100 convenience stores, blaming sustained financial losses and mounting costs linked to government policy decisions.

Those stores marked for closure were part of the Morrisons Daily convenience estate and entered the business when Morrisons acquired McColls in 2022.

"Morrisons cuts nearly 5,000 jobs as losses mount – report" was originally created and published by Retail Insight Network, a GlobalData owned brand.