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| Morrisons plans to cut 2,600 management jobs | Morrisons plans to cut 2,600 management jobs |
| (about 4 hours later) | |
| UK supermarket chain Morrisons plans to cut 2,600 jobs as a result of changes to its management structure. | UK supermarket chain Morrisons plans to cut 2,600 jobs as a result of changes to its management structure. |
| The firm, which has 126,000 staff, will reduce layers of management, it said. | |
| Dalton Philips, Morrisons' chief executive, said the changes would "lead to simpler, smarter ways of working". | |
| The former chairman, Sir Ken Morrison, told the BBC that the announcement was "very disappointing" and that a more hands-on approach was needed. | |
| "Shop in your own shop, talk to customers and don't make presidential visits - go as an ordinary member of the public," he said. | |
| Earlier this month he also attacked the chief executive at the company's annual meeting, telling shareholders he thought the results were "disastrous". | |
| Morrisons said it had tried out the new structure and that it led to better performance. | |
| Mr Dalton said: "This is the right time to modernise the way our stores are managed. These changes will improve our focus on customers and lead to simpler, smarter ways of working." | |
| The roles at risk include department manager and supervisory positions in stores, says the company. | The roles at risk include department manager and supervisory positions in stores, says the company. |
| Consultation period | Consultation period |
| The supermarket will also create 1,000 jobs in Morrisons M local convenience stores and 3,000 in new supermarkets. Morrisons will "look to offer displaced colleagues the opportunity to work in these growing businesses", it said. | The supermarket will also create 1,000 jobs in Morrisons M local convenience stores and 3,000 in new supermarkets. Morrisons will "look to offer displaced colleagues the opportunity to work in these growing businesses", it said. |
| Joanne McGuinness, Usdaw's national officer representing Morrisons workers, said: "The next few weeks will be a worrying time for our members in Morrisons and we will do everything possible to support them. Today marks the start of a 45-day consultation period, where we will look in detail at the company's business case. | Joanne McGuinness, Usdaw's national officer representing Morrisons workers, said: "The next few weeks will be a worrying time for our members in Morrisons and we will do everything possible to support them. Today marks the start of a 45-day consultation period, where we will look in detail at the company's business case. |
| "Our priority will be to safeguard as many jobs as possible, maximise employment within the business and get the best possible outcome for our members affected by this restructuring." | "Our priority will be to safeguard as many jobs as possible, maximise employment within the business and get the best possible outcome for our members affected by this restructuring." |
| The changes come amid increasing pressure on Mr Philips after the Bradford-based chain posted an annual loss of £176m in the year to February and recently announced a 7.1% drop in quarterly sales. | The changes come amid increasing pressure on Mr Philips after the Bradford-based chain posted an annual loss of £176m in the year to February and recently announced a 7.1% drop in quarterly sales. |
| The supermarket has already announced £1bn in price cuts over three years, launched an online operation, expanded its presence in the convenience store sector and moved to update antiquated IT systems. | The supermarket has already announced £1bn in price cuts over three years, launched an online operation, expanded its presence in the convenience store sector and moved to update antiquated IT systems. |
| It is not the only supermarket struggling. In March, Sainsbury's reported its first fall in sales for nine years. | It is not the only supermarket struggling. In March, Sainsbury's reported its first fall in sales for nine years. |
| Sainsbury's chief executive Justin King said the supermarket had continued to invest in reducing prices and improving quality in a "challenging market". | Sainsbury's chief executive Justin King said the supermarket had continued to invest in reducing prices and improving quality in a "challenging market". |
| The big four supermarkets - Tesco, Sainsbury's, Asda and Morrisons - are being squeezed by low-cost rivals such as Aldi and Lidl, as well as upmarket chains such as Waitrose. | The big four supermarkets - Tesco, Sainsbury's, Asda and Morrisons - are being squeezed by low-cost rivals such as Aldi and Lidl, as well as upmarket chains such as Waitrose. |
| Morrisons' shares rose 2.3% to 192.6 pence apiece. |