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Morrisons to cut 2 600 jobs

London - Morrisons, Britain's No. 4 grocer, has proposed changes to its store management structure that will involve around 2 600 redundancies, it said on Tuesday.

The firm, which trails market leader Tesco, Walmart's Asda and Sainsbury's, issued a profit warning in March and set out a plan to combat a loss of trade to discounters as well as a weak overall food market.

That plan called for investing £1bn ($1.7bn) in price cuts over the next three years, financed by cost savings of the same amount.

Morrisons said it had begun talks with store staff and their representatives about a new management structure, which would reduce in-store management tiers and simplify responsibilities.

The firm currently trades from 511 supermarkets and 117 M local convenience stores.

It said that in the current year 1 000 jobs would be created in convenience stores and an additional 3 000 in new supermarkets.

Colleagues affected by the cutbacks would be offered the opportunity to work in these businesses.

Morrisons posted a 7.1% slump in first quarter sales, while this month the strategy of chief executive Dalton Philips came under attack from Ken Morrison, the son of the grocer's founder and a former boss

Shares in Morrisons, which have lost 29% of their value this year, were up 1.5% at 191 pence at 13:06 GMT.

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