Widespread store closures are quickly becoming the norm across the global retail industry, with thousands of locations closing at an unprecedented rate.
While the decline of physical stores has played a major role in job losses, another force accelerating change is the rapid adoption of advanced technology and artificial intelligence (AI). Retailers are increasingly restructuring their operations to prioritize automation and efficiency, often at the expense of traditional roles.
As a result, positions that were once considered essential are now being eliminated for being redundant or costly. For many companies, workforce reductions are no longer a last resort, but a strategic decision linked to long-term transformation.
Among the latest to reveal cuts is Morrisons, underlining a wider trend that could reshape employment across the retail sector.
British supermarket chain Morrisons has revealed plans to cut around 200 jobs at its Bradford head office, putting around 8% of its workforce at risk.
The affected positions span key departments, including marketing, commercial and technical teams.
Company leaders cited rising insurance costs, the ongoing cost of living crisis and higher fuel prices linked to geopolitical 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 AI adoption and automation across the enterprise, an initiative that began in 2025.
A Morrisons spokesperson told Better Retailing the program aims to “ensure our core functions are best placed to serve our stores and strengthen our ability to deliver for customers in the current challenging market conditions.”
Morrisons confirms more redundancies amid AI transformation.Shutterstock
The latest redundancies follow a series of cost-cutting measures taken by Morrisons in recent years.
In March 2025, the retailer planned widespread closures, including 52 in-store cafes, 18 market kitchens, 17 convenience stores, 13 florists, 35 meat counters, 35 fish counters and four pharmacies, according to the BBC.
While many affected employees were expected to be reassigned, approximately 365 positions remained at risk.
These moves reflect a broader effort to optimize operations and reallocate resources toward higher-margin, technology-driven areas of the business.
Despite continued closures and layoffs, Morrisons has reported strong financial performance, according to its latest earnings report.
For fiscal year 2024-2025, the company recorded:
Total revenue growth of 3.2%
Group sales increase 2.8%
Debt reduced 46% from its 2022 peak
£233 million (about $315.6 million) in annual cost savings
This brings total savings to around £845 million (around $1.14 billion), with Morrisons targeting £1 billion (around $1.35 billion) in savings by the end of fiscal 2026.
The results highlight a growing trend across the industry, where companies are becoming more agile and profitable, even as workforce reductions continue.
Morrisons is far from alone. Across retail sectors, large corporations are increasingly linking layoffs to investments in AI and digital transformation initiatives.
Recent examples include:
Amazon: Cut about 16,000 corporate jobs to fund AI initiatives, according to Amazon News.
Nike: Laying off about 775 jobs in distribution and operations, CNBC reported.
house deposit: Cut approximately 800 positions, many of them in technology roles, CIO Dive confirmed.
Aim: Eliminate about 1,800 corporate employees as part of an AI restructuring, according to The New York Times.
For many businesses, AI is positioning itself as a competitive necessity and cost-saving tool, enabling automation, streamlining workflows, and improving customer experiences.
However, analysts point out that AI is often one of several factors driving layoffs, along with macroeconomic pressures and changing consumer demand.
Although the U.S. unemployment rate remains relatively low at 4.3% in March 2025, according to the U.S. Bureau of Labor Statistics, layoffs are accelerating.
More than 1.2 million jobs were eliminated in 2025, an increase of 58% year over year, according to the Challenger, Gray, & Christmas 2025 Job Cut Announcement Report. The retail sector alone accounted for nearly 93,000 layoffs, an increase of 123%.
Coverage on more layoffs and store closings:
Experts suggest that AI adoption could already be influencing hiring trends.
“There is considerable speculation that the adoption of generative AI was the cause of recent layoffs and a slowdown in hiring, particularly in the tech industry, for entry-level workers and in programming and customer service 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 retail strategy, the speed and scale of AI-driven restructuring marks a significant shift.
Industry analysts increasingly see these changes as structural rather than cyclical, potentially affecting not only frontline retail workers but also mid-level corporate roles in functions such as marketing, operations and administration.
Morrisons’ latest cuts show how even traditional grocery retailers, which have historically been less exposed to automation than other sectors, are now accelerating the adoption of AI at a corporate level.
Industry experts warn that continued store closures and staff reductions could have far-reaching consequences beyond corporate balance sheets.
The decline of physical retail is reshaping not only business operations but also local economies, employment opportunities and community infrastructure.
“Widespread closures of physical retail stores in the digital age significantly impact business outcomes, urban communities, and regional economies,” ScienceDirect industry researchers said.
“Understanding this phenomenon is crucial for retailers, policymakers and society at large.”
Related: Dunkin’ could exit an entire market in 2026 after 14 years
This story was originally published by TheStreet on April 16, 2026, where it first appeared in the Employment section. Add TheStreet as a preferred source by clicking here.
