Morrisons, the supermarket chain with roots dating back to 1899 in Bradford, is set to close its fruit-packing plant in the city, jeopardizing the employment of 450 workers.
The move comes as Morrisons, burdened with debt, seeks to cut costs following its acquisition by American private equity firm Clayton Dubilier & Rice in October 2021.
The company intends to relocate its operations from the Cutler Heights area of Bradford, where its first-ever fruit-packing plant was located, to another plant in Thrapston, Northamptonshire, and a distribution center in Wakefield later this year.
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While the closure of the Bradford site puts jobs at risk, Morrisons stated approximately 400 new positions will be created in Thrapston and Wakefield.
A spokesperson expressed regret about the situation and said 456 employees at Cutler Heights are at risk of redundancy.
The company pledged to make efforts to offer alternative employment opportunities for these workers at other Morrisons sites in the local area, including manufacturing, logistics, and retail facilities.
Read More: Morrisons employee morale ‘super-low’ despite pay rise
Morrisons hopes to repurpose the Bradford site as a pet food manufacturing operation but acknowledges this transformation will require time and investment.
The closure of the Cutler Heights plant is the latest blow to employment in Bradford, as Morrisons also plans to transfer hundreds of customer contact center jobs to telecom services firm Webhelp.
Although this move affects over 300 employees, Morrisons has assured that no redundancies will occur and all contact center staff will continue to work remotely.
Read More: Morrisons plans to cut £700 million in costs despite revenue rise
In addition to these changes, Morrisons intends to streamline its property maintenance operations by reducing the number of suppliers from 83 to a single provider, potentially impacting over 1,000 jobs, many of which are based in Bradford.
The company also plans to downsize its property maintenance workforce by up to 50 employees at its Bradford head office and other locations across the country.
Morrisons is implementing these cost-cutting measures due to the significant rise in the cost of servicing its £7.5 billion debt, compounded by increasing wages, energy and commodity costs, and consumer spending restraint resulting from higher energy bills and essential expenses.
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During the 13-week period ending on April 30, Morrisons reported a one percent increase in sales, which, in reality, reflects a decline in the volume of goods sold due to higher food price inflation.
The company’s underlying profits for the six months ending on April 30 fell by 10.7 percent to £394 million as it prioritized price competitiveness amid challenging inflationary pressures.
In related news, the bakery and coffee chain Le Pain Quotidien has closed all but one of its UK sites, resulting in the loss of 250 jobs.
The closures were attributed to reduced footfall in London, as well as rising rent and wage costs. Administrators are now tasked with realizing value from the company’s leasehold interests and other assets.
