Sir Ken disappointed at Morrisons’ jobs cut news
INVESTORS reacted positively to the announcement that Morrisons plans to cut 2,600 jobs as part of a management shake-up, although its former chairman expressed his disappointment.
Shares in the Bradford-based supermarket chain rose by 4.3p, or 2%, to 192.6p on the back of the jobs announcement.
However, Sir Ken Morrison said the news was “very disappointing.”
“I feel for them all because they’ve been there in their jobs for quite a long time. A lot of them are good friends of mine and a lot of them are known to me,” Sir Ken told the BBC.
“Breaking a team up is disappointing.”
Sir Ken, who retired in 2008 after 55 years in which the company became the UK’s fourth biggest grocer, also said “a more hands-on approach” was needed.
“Shop in your own shop, talk to customers and don’t make presidential visits – go as an ordinary member of the public.”
Morrisons said the changes were the “next steps” in its modernisation programme as it announced it had started discussions with staff about a simpler management structure.
Dalton Philips, chief executive, said: “This is the right time to modernise the way our stores are managed. These changes will improve our focus on customers and lead to simpler, smarter ways of working.
“We know that moving to the new management structure will mean uncertainty for our colleagues and we will be supporting them through the process.”
Morrisons said it will create 1,000 jobs in its M local convenience stores and an additional 3,000 in new supermarkets.
The news of the cuts comes less than two weeks after the grocer’s management was accused of having a “bulls**t” turnaround strategy.
Sir Ken lambasted a recovery plan presented by chief executive Dalton Philips at the group’s AGM.
Philips said bosses had a clear strategy for recovery to ensure the supermarket could succeed in the changing retail marketplace but Sir Ken said he doubted the ability of the current board of directors to deliver a rapid and sustained recovery of the group, which announced in March it had slumped to a £176m loss last year.
