Morrisons is set to ditch at least 83 property maintenance suppliers, which could risk over 1,000 jobs.
According to reporting by The Guardian, the supermarket giant is also likely to lay off up to 50 staff at its Bradford head office and across the country who are dealing with property maintenance.
The suppliers, which provide cleaning, electrical, gardening and roofing for Morrisons stores, were warned that their contracts would likely end in July, which they said will affect more than 200 providers and 100 head office staff, however this has been disputed by the retailer.
Subscribe to Grocery Gazette for free
Sign up here to get the latest grocery and food news each morning
Some of the suppliers, who have worked with Morrisons for decades, said these relationships had been ceased over short video calls where they were unable to ask any questions.
As a result of the plans, some of the grocery retailers staff will be transferred to its new sole provider, City Facilities Management, with some existing suppliers potentially becoming subcontractors.
While suppliers have been given no guarantees on how many job losses there will be, Morrisons expects 120 in total.
“We are proposing some important changes and improvements to our maintenance model through a new national partnership with City FM, but we anticipate many of our existing suppliers to continue to work for Morrisons under subcontracting arrangements,” a Morrisons spokesperson said.
“We are endeavouring to communicate and execute these changes carefully and thoughtfully with all those affected.”
