Morrisons staff across the country have been offered voluntary redundancy as it prepares to scrap home deliveries.
The supermarket plans to remove the service from 50 stores, thought to include branches in Staffordshire and West Dunbartonshire.
Around 150 stores and warehouses will reportedly keep providing home deliveries.
It comes as Kantar data showed online grocery had reached its lowest market share since May last year, dipping 0.8 per cent in four weeks.
“At the start of the Covid-19 pandemic we rapidly grew our store home delivery service to serve the many customers who had moved from shopping in-store to online,” Morrisons said.
“With many restrictions now eased, we must now adapt and make some changes to the size of our online operation to meet our customer demands.
“All colleagues affected by these proposed changes will be given the opportunity to either move into an alternative role within our business or apply for voluntary redundancy.”
It comes as Morrisons gears up for an October auction between two US private equity firms.
The rival buyers have engaged in a bidding war for the grocer since June, inflating its share price from 178p to 292p.
Morrisons chief executive David Potts, chief operating officer Trevor Strain and finance director Michael Gleeson stand to make millions if the deal goes ahead.