Morrisons AI push helps deliver £940m savings

The savings have been accompanied by job cuts at the company's Bradford head office, though the exact number of redundancies was not specified in the announcement. Baitiéh attributed the financial improvements to AI-driven operational efficiencies, including better demand forecasting and supply chain optimization.

The £940m figure represents cost reductions across multiple areas of the business, with AI tools being deployed to streamline processes traditionally handled by human staff. The job losses at the head office are part of a broader restructuring effort that the company says will allow it to remain competitive in the challenging retail environment. Morrisons has been investing in AI technology under Baitiéh's leadership, joining other UK supermarkets in automating aspects of their operations.

The announcement comes amid wider industry trends of retailers adopting AI to cut costs and improve margins. Morrisons did not provide a breakdown of how much of the savings came specifically from headcount reduction versus other efficiency gains. The company stated that the changes are necessary to ensure long-term sustainability and that affected employees would be supported through the transition.