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More than 200 roles are at risk at Morrisons<\/a>, after the supermarket<\/a> revealed plans to step up its use of AI<\/a>\u00a0as part of a cost-cutting drive.<\/p>\n The sweeping job cuts affect all functions at its Hilmore House head office and represent around 8% of all staff.<\/p>\n Affected employees were called into meetings and\u00a0notified of the restructure on Monday afternoon. The Grocer understands Morrisons has begun consulting with head office staff, with the first consultation meeting set for Friday.<\/p>\n \u201cDuring 2025 Morrisons commenced a long-term programme to re-engineer certain business functions, to concentrate on the core activities that our customers value, streamline processes and structures, automate a number of manual tasks and capitalise on the potential of data and AI to improve performance,\u201d said a spokesperson for the grocer, confirming news that was first reported by Better Retailing.<\/p>\n \u201cAs we evolve and adapt, we are proposing to make some changes to a number of areas within our central structure. This will involve making some tough but necessary decisions which will impact on colleagues in our head office, where we are proposing to place a number of roles at risk of redundancy,\u201d they added.<\/p>\n Morrisons said the multi-year programme would ensure its central functions are \u201cbetter placed\u201d to serve stores and will strengthen its ability to deliver for customers in \u201cvery challenging\u201d market conditions.<\/p>\n The move marks the second round of job cuts at Morrisons in just over a month, after the supermarket put 100 roles at risk in a restructure of the Morrisons Daily commercial<\/a> and support teams.<\/p>\n This time, roles in commercial, technical, own brand, marketing<\/a>, HR and supply chain<\/a> are understood to be included in the latest proposals.<\/p>\n It\u2019s not yet clear exactly which areas of AI Morrisons intends to invest in most heavily, although The Grocer understands the retailer has been increasingly using the technology<\/a> in supply forecasting.\u00a0Last September,\u00a0it also rolled out a new AI-powered category management tool<\/a> and data platform, More Viu.<\/p>\n Morrisons battling \u2018unexpected external cost headwinds\u2019<\/p>\n CEO Rami Baiti\u00e9h<\/a> is under pressure to\u00a0cut costs in order to fuel his turnaround plan and pay down Morrisons\u2019 \u00a33.1bn debt pile.<\/p>\n During January\u2019s annual results call,\u00a0Baiti\u00e9h\u00a0said progress had been slowed by \u201cunexpected external cost headwinds\u201d, pointing to Rachel Reeves\u2019<\/a>\u00a0increases to National Insurance as well as EPR costs.<\/p>\n