Morrisons has reported a pre-tax profit of £2.1 billion for the year ending 27 October 2024, marking its first return to the black since being acquired by private equity firm Clayton Dubilier & Rice in 2021.

The Bradford-based supermarket’s profit follows a pre-tax loss of £919m the previous year and a loss of £1. billion the year before that.

Despite this turnaround, the company has reduced its workforce by more than 3,600 roles over the past year. Headcount fell from 104,819 to 101,144, with reductions across store staff, manufacturing, distribution, and head office positions. Store staff numbers dropped from 88,258 to 85,508, manufacturing employees from 7,865 to 7,612, distribution workers from 5,783 to 5,424, and head office roles from 2,913 to 2,600. The job cuts follow a previous year in which Morrisons shed more than 8,800 positions.

Revenue declined from £18.3bn to £17bn during the period, according to accounts filed with Companies House. Despite the reduction in revenue, the retailer reported growth in like-for-like sales of 3.9 per cent in the second quarter of the current financial year, with total sales up 4.2 per cent to £3.9bn. Underlying earnings before interest, tax, depreciation and amortisation rose 7.2 per cent in the first half of the year to £344m.

Chief executive officer Rami Baitiéh commented on the results, stating, “Against the backdrop of a challenging macro environment, with inflation driving subdued consumer sentiment, value remains at the forefront of customers’ minds. 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”.

The company has also closed more than 50 of its cafes this year, putting a further 365 jobs at risk, as part of ongoing cost-saving measures. Morrisons is not alone in reducing its workforce; other major UK supermarkets including Tesco, Aldi, and Sainsbury’s have also announced job cuts in recent months.

Morrisons’ latest financial results highlight the balancing act faced by large retailers: delivering profitability while adapting to shifting consumer behaviour and market pressures.

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