Widespread store closures are quickly becoming the norm in the global retail industry, with thousands of locations closing at an unprecedented rate.
While the decline of physical stores has been a major contributor to the job losses, another influence accelerating change is the rapid adoption of advanced technology and artificial intelligence (AI). Salespeople are increasingly reorganizing their operations to prioritize automation and efficiency, often at the expense of traditional roles.
As a result, positions that were once considered important are now being eliminated as unnecessary or too expensive. For many companies, downsizing is no longer a last resort, but a strategic decision in line with long-term change.
Among the latest to reveal the cuts is Morrisons, underlining a wider trend that could disrupt employment across the retail sector.
UK supermarket Morrisons has revealed plans to cut almost 200 roles at its Bradford head office, putting around 8% of its workforce at risk.
The affected positions range from key departments, including marketing, sales, and technical teams.
The company’s leadership cited rising insurance costs, an ongoing cost-of-living crisis, and high fuel prices linked to political tensions in the Middle East as contributing factors, according to employee accounts reported by GB News.
However, the layoffs are also part of a broader, multi-year transformation strategy focused on accelerating the adoption of AI and automation across the business, a move that began in 2025.
A spokesperson for Morrisons told Better Retailing that the move is aimed at “ensuring our central operations are better placed to serve our stores and strengthen our ability to deliver to customers in challenging market conditions.”
The latest layoffs follow a series of cost-cutting measures by Morrisons in recent years.
In March 2025, the retailer planned widespread closures, including 52 restaurants in stores, 18 market kitchens, 17 convenience stores, 13 flower shops, 35 meat counters, 35 fish counters, and four pharmacies, according to the BBC.
Although many of the affected workers were expected to be rehired, approximately 365 roles remained at risk.
These moves reflect a broader effort to streamline operations and reallocate resources to high-margin business areas and technologies.
Despite ongoing closures and layoffs, Morrisons has reported strong financial performance, according to its latest earnings report.
In the 2024-2025 financial year, the company recorded:
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Total revenue growth of 3.2%
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Group sales up 2.8%
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Debt has been reduced by 46% from the 2022 peak
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£233 million (about $315.6 million) in annual cost savings
This brings total savings to £845 million (about $1.14 billion), with Morrisons targeting £1 billion (about $1.35 billion) in savings by the end of the 2026 financial year.
The results highlight a growing trend across the industry, where companies are becoming leaner and more profitable, even as layoffs continue.
Morrisons is not alone. Across all retail sectors, large companies are increasingly integrating AI finance and digital transformation initiatives.
Recent examples include:
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Amazon: Cutting about 16,000 corporate roles to fund AI programs, according to Amazon News.
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Nike: About 775 jobs are being cut in distribution and operations, CNBC reported.
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The Home Depot: To cut about 800 positions, mostly in technology jobs, CIO Dive confirmed.
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The target: Laying off nearly 1,800 corporate employees as part of AI restructuring, according to the New York Times.
For many companies, AI is positioned as a competitive necessity and cost-saving tool, enabling automation, streamlining workflows, and improving customer experience.
However, analysts note that AI is often one of the few factors driving layoffs, alongside macroeconomic pressures and changing consumer demand.
Although the unemployment rate in the US remains low, at 4.3% as of March 2025, according to the US Bureau of Labor Statistics, layoffs are increasing.
More than 1.2 million jobs were cut by 2025, marking a 58% year-over-year increase, according to the Challenger, Gray, & Christmas 2025 Job Cut Announcement Report. The retail sector alone accounted for nearly 93,000 layoffs, a 123% cut.
Additional layoffs and store closings include:
Experts suggest that the adoption of AI may already be impacting employment.
“There is a strong perception that the adoption of productive AI was the cause of recent layoffs and slow hiring, especially in the technology industry, for entry-level workers, as well as customer service and planning jobs,” said Harvard Business Review analysts, Thomas H. Davenport and Laks Srinivasan. “There may be more to come.”
While cost reduction and automation have long been part of the marketing strategy, the speed and scale of AI-driven restructuring marks a major shift.
Industry analysts increasingly view these changes as structural rather than disruptive, which may affect not only front-line employees but also mid-level corporate roles in functions such as marketing, operations, and management.
Morrisons’ recent cuts show that even traditional grocers, which have previously been less exposed to automation than other sectors, are now accelerating the adoption of AI at a business level.
Industry experts warn that continued store closures and layoffs could have far-reaching effects beyond companies’ balance sheets.
A decline in inventory not only slows down business operations but also local economies, job opportunities, and public infrastructure.
“Widespread retail closures in the digital age have significant impacts on business outcomes, urban communities, and regional economies,” said industry researchers at ScienceDirect.
“Understanding this situation is important for retailers, policy makers, and society at large.”
Related: Dunkin’ could exit the entire market by 2026 after 14 years
This story was originally published by TheStreet on April 16, 2026, where it appeared first in the Employment section. Add TheStreet as a favorite source by clicking here.
