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The Markets
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The Markets
by Proactive
Proactive UK has moved.
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The Markets
by Proactive
Proactive UK has moved.
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Retail

Morrisons to slash 1,500 management roles and focus on customer service

The move comes after similar action taken by rivals Tesco and Sainsbury

Morrison Supermarkets PLC (LON:MRW) plans to cut 1,500 middle-management roles in stores in a bid to lower costs and add more customer-facing jobs.

The cuts will include store warehouse managers, who will be given the option to apply for one of the 800 other management roles currently vacant at Morrisons or take a lower paid role or redundancy.

The supermarket chain will create 1,700 lower-paid jobs on the shop floor and at tills in an effort to improve customer service.

READ: Sainsbury's to cut thousands of jobs as supermarkets tackle industry-wide challenges

"Our aim is to serve customers better with more frontline colleagues in stores improving product availability and helping customers at the checkouts," said Gary Mills, Morrisons retail director.

"Very regrettably, there will be a period of uncertainty for some managers affected by these proposals and we’ll be supporting them through this important process. Our commitment is to redeploy as many affected colleagues as possible."

The move comes after similar action taken by rivals Tesco PLC (LON:TSCO) and J Sainsbury plc (LON:SBRY).

Sainsbury’s is getting rid of thousands of management jobs at its stores while Tesco has said it would cut 800 jobs in an effort to simplify its operations.

READ: Tesco to cut 800 jobs as it streamlines operations amid tough competition

The UK’s largest supermarkets have been losing market share to discounters Aldi and Lidl while tackling rising cost inflation as a result of a weaker pound following the Brexit vote. Consumers are also tightening the purse strings due to higher inflation and stagnant wage growth.

The decision to slash staff costs also stems from a shift towards shopping online and in small local stores as well as an increase in the minimum wage.

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