Wm Morrison Supermarkets (LON:MRW) is cutting around 1,500 store management roles and creating 1,700 more junior jobs, The Telegraph has revealed. The blue-chip grocer follows peers Tesco (LON:TSCO) and J Sainsbury (LON:SBRY) which recently announced plans to shake up their operations.
Morrisons’ share price rose in the previous session, adding 0.59 percent to close at 223.30p. The stock outperformed the broader UK market, with the benchmark FTSE 100 index shedding 43.16 points to end the session 0.57 percent lower at 7,490.39. The group’s shares have lost nearly seven percent of their value over the past year, as compared with more than a five-percent rise in the Footsie.
Morrisons to shake up workforce
The Telegraph reported yesterday that Morrisons had informed staff yesterday of proposals which will see hundreds of workers’ roles dramatically change as the position of warehouse manager is stripped from every store. The newspaper notes that it is understood that there are around 800 current management vacancies at the blue-chip grocer, which current managers can apply for. This, however, means that around 700 senior workers will either face redundancy or a lower paying job if they stay with the company.
The Telegraph quoted Morrisons’ retail director Gary Mills as saying that the overhaul was part of the grocer’s aim to “serve customers better with more front-line colleagues in stores improving product availability and helping customers at the checkouts”.
Analysts on Morrisons
The 15 analysts offering 12-month price targets for Morrisons for the Financial Times have a median target of 230.00p on the shares, with a high estimate of 275.00p and a low estimate of 170.00p. As of January 27, the consensus forecast amongst 19 polled investment analysts covering the blue-chip group advises investors to hold their position in the company.