Morrisons has announced that they are cutting 700 additional jobs and plan to replace these workers with cash-counting machines. The news comes six months after the Bradford HQ of the company made 165 people redundant.
The installation of cash counting machines at Morrisons’ stores will mean that 689 supervisors and office managers are going to find themselves without a job. The company explained that the machine will be able to do their job and the new technology is just one art of the company’s ongoing list of improvements to make sure that they are able to stay competitive in the marketplace.
The staff will receive a four week consultation, but it is unlikely that they are going to be redistributed into other positions and will more than likely be made redundant. Six months ago about 165 jobs were made redundant at the HQ when the company decided to outsource its financial transaction processing service to a firm in India to cut costs.
The last time that the company completed a large amount of job cuts at one time was back in 2006 when it decided to fire about 2,000 workers after closing three depots in Warrington, Kent, and Bristol. Over the last few months Morrisons has been struggling even though it is one of the few supermarkets that managed to make it through the horse meat scandal without being touched.
The company is suffering largely behind other supermarkets because it has a limited number of convenience stores and does not offer online grocery shopping which are two key growth areas in the UK when it comes to food sales. In March, Morrisons’ market share dropped by 12%. It is the only major UK supermarket to see such a dramatic fall in its share price.