Morrisons reports £629m pre-tax loss and nearly 5,000 job cuts

Morrisons has reported a significant increase in debt and a reduction in its workforce over the year ending October 2025. Newly filed accounts show the supermarket's net debt rose to £7.5 billion, up from approximately £7 billion the previous year. This increase was largely driven by higher lease liabilities related to an expanded vehicle fleet and new store openings in the Channel Islands.

The company's average monthly workforce decreased by 4,912 employees, falling from 101,144 to 96,232. These cuts included over 4,200 roles in stores, as well as positions in food manufacturing and distribution. A spokesperson stated the decline primarily resulted from the closure of a newspaper home delivery service, the restructuring of the retail people team, and the downsizing of the Rathbones bakery business, noting that store reductions occurred by not replacing departing staff rather than through a redundancy programme.

Despite a 2.8 per cent rise in group revenue to £15.7 billion, Morrisons reported a pre-tax loss of £629 million before exceptional items. The retailer, which is owned by the US private equity firm Clayton, Dubilier & Rice, is currently undergoing a turnaround programme led by CEO Rami Baitieh to address market share losses to competitors such as Aldi and Lidl.