Morrisons cutting jobs and closing cafes to reduce debt pressure

From Yahoo Finance: 2025-03-24 10:34:00

Morrisons plans to cut jobs and close cafes, butchers, fish counters, and convenience stores to combat rising staff costs, putting 365 workers at risk. CEO Rami Baitiéh says changes are essential to renew the company’s focus on customer value and growth.

The move comes ahead of Morrisons’ trading update and amidst high debt costs from its takeover by CD&R in 2021. The company has been paying out millions in debt interest, leading to a pre-tax loss of around £500m in the latest financial year.

Morrisons has been trying to reduce its debt pile, selling ground leases and announcing a major restructuring. However, fresh challenges, including tax increases, have forced the company to speed up cost-cutting efforts. The company plans to close multiple locations to mitigate recent cost increases and streamline operations.

Read more: Morrisons to axe hundreds of jobs and shut cafes to relieve debt pressures