British supermarket group Morrisons shed nearly 5,000 jobs last year as its debt levels mounted, corporate filings show, highlighting the financial pressure facing the private equity-backed grocer.
The Bradford-based retailer saw its average monthly workforce fall from 101,144 to 96,232 in the year to October 2025, according to annual accounts published at Companies House. The figures represent a net drop of 4,912 staff members at the UK's sixth-largest supermarket group.
Financial results filed with the registrar reveal that the company's debt burden increased from £7.07 billion to £7.52 billion over the 12-month accounting period. Heavy financing costs and commercial headwinds contributed to total annual losses of £629 million at the group.
Revenue growth and pre-Christmas cyber attack
Despite the workforce cuts and heavy losses, group revenue increased by 2.8 per cent to £15.7 billion for the financial year.
The top-line growth was delivered despite major operational disruption stemming from a cyber incident that caused a widespread IT systems outage just before Christmas 2024. The technical failure compromised inventory management and severely affected product availability on supermarket shelves during the crucial festive shopping period.
Turnaround plan and competition from German discounters
The retailer is currently engaged in an extensive turnaround programme led by chief executive Rami Baitieh, who was brought in as boss to reverse the group's fortunes and stabilize its market position after years of lagging behind industry peers.
Morrisons has struggled to defend its customer base against fierce competition from German discount grocery chains Aldi and Lidl. Both discounters have expanded aggressively across the United Kingdom, offering lower prices and winning over budget-conscious shoppers, and have both overtaken Morrisons in UK market share in recent years.
Private equity backing and corporate background
The grocery group is owned by Clayton, Dubilier & Rice, a prominent US private equity firm that bought the business in a multibillion-pound takeover. Private equity transactions often involve loading significant debt onto the acquired company's balance sheet, requiring substantial cash flow to service interest payments.
Based in Bradford, West Yorkshire, Morrisons operates hundreds of supermarkets, convenience stores, and petrol filling stations across England, Scotland, and Wales. The corporate accounts detailing the latest headcount reductions and financial metrics were formally lodged with Companies House, the executive agency of the UK government responsible for incorporating businesses and maintaining public financial records.
