Morrisons cuts 4,912 jobs as distribution and bakery roles hit

For supply chain and logistics operators, Morrisons' disclosure is not just a retail headcount headline; it is a map of where a vertically integrated grocer is rewiring production and distribution. More than 4,200 store roles disappeared, but the hits to food manufacturing and distribution are the ones that change procurement volumes, delivery networks, and make-or-buy decisions. The December 2024 IT outage—which damaged product availability during the critical Christmas peak—is a reminder that supply continuity now depends on cyber resilience as much as physical capacity.

Morrisons has revealed that its average monthly workforce fell by 4,912 employees in the year to October 2025, from 101,144 to 96,232, according to accounts filed at Companies House. The reduction equates to nearly 5,000 roles and is one of the clearest quantitative signals yet of the scale of the turnaround programme being run by chief executive Rami Baitieh. More than 4,200 of the lost roles were in stores, but the accounts also confirm that food manufacturing and distribution positions were affected, making this a significant moment for the grocer's physical supply chain as well as its retail estate. Because the figure reflects average monthly workforce rather than a single redundancy event, some of the reduction may have come through natural attrition, non-replacement, or role elimination rather than compulsory layoffs, but the net effect is a much smaller operational base.

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Morrisons has revealed that its average monthly workforce fell by 4,912 employees in the year to October 2025, from 101,144 to 96,232, according to accounts filed at Companies House.

Morrisons attributes the headcount decline to three main structural moves: the closure of the newspaper home delivery service in convenience stores, the restructuring of the retail people team, and the downsizing of the Rathbones bakery business. The Rathbones reduction is particularly important because Morrisons has historically used vertical integration as a differentiator, producing and moving more of its own goods than many rivals. Cutting jobs in food manufacturing and distribution may lower near-term operating costs, but it also increases dependency on third-party suppliers and logistics partners, and it can reduce the speed and control the retailer has over replenishment and fresh product quality.

The operational changes sit alongside a mixed financial picture. Revenue increased 2.8% to £15.7 billion during the year, despite a cyber incident just before Christmas 2024 that caused an IT systems outage and disrupted product availability. That outage is a reminder that modern grocery supply chains are as vulnerable to digital failures as they are to physical constraints; lost availability during the peak trading season can quickly translate into lost sales and eroded customer trust. At the same time, Morrisons' reported net debt rose to £7.52 billion from £7.07 billion a year earlier. The company said the figure includes lease liabilities and preference shares, with net debt of £3.2 billion excluding those items.