Morrisons has returned to profitability for the first time since its private equity-backed takeover in 2021, despite shedding over 3,600 jobs.
The Bradford-based supermarket behemoth reported a pre-tax profit of £2.1bn for the year ending 27 October, 2024, according to newly filed accounts at Companies House, as reported by .
This is a significant turnaround from the pre-tax loss of £919m recorded in the previous 12 months and £1.3bn the year before that. However, the company's workforce was reduced from 104,819 to 101,144 during the last financial year.
The cuts affected store staff numbers, which fell from 88,258 to 85,508, manufacturing employees, which dropped from 7,865 to 7,612, distribution staff, which decreased from 5,783 to 5,424, and head office personnel, which went down from 2,913 to 2,600. These job losses follow the more than 8,800 roles Morrisons cut the previous year.
The results also reveal a decline in the chain's revenue, from £18.3bn to £17bn. Morrisons was acquired by US private equity firm Clayton Dubilier & Rice (CD&R) in October 2021.
Morrisons, Tesco, Aldi and Sainsbury’s cut jobs
The figures were released after City AM reported in June that Morrisons had seen an increase in sales for the second quarter of its current financial year. Like-for-like sales rose 3.9 per cent in the second quarter while total sales grew 4.2 per cent to £3.9bn.
Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) climbed by 7.2% in the first half of the year to £344m.
At the time, CEO Rami Baitiéh commented: "Against the backdrop of a challenging macro environment, with inflation driving subdued consumer sentiment, value remains at the forefront of customers' minds."
He continued, "Throughout the first half we've worked hard on helping customers through these challenges with a rigorous focus on price, promotions and meaningful rewards for loyalty."
Earlier this year, Morrisons took the decision to shut over 50 of its cafes as part of its cost-saving measures, which put an additional 365 jobs in jeopardy.
In March, the supermarket chain also reported a rise in sales for its first quarter.
Job cuts have been a common theme among Ƶ supermarkets, with Morrisons not being the only one tightening its belt.
Aldi disclosed plans in February to eliminate up to 350 positions at its Ƶ head office in Atherstone, near Birmingham.
Both Tesco and Sainsbury's have also reduced their workforce following last October's Budget.
Sainsbury's announced in January that it would cut 3,000 jobs and close all in-store cafes, while Tesco made 400 roles redundant in efforts to "simplify" operations.
