Woolworths to Offshore Hundreds of Corporate Jobs as Restructuring Begins
Woolworths has announced plans to offshore hundreds of corporate jobs and will begin consulting with potentially affected employees. The move is expected to impact teams including People, IT and Finance as the retailer seeks to improve efficiency and remain competitive amid growing pressure from international rivals. Despite the planned job changes, Woolworths says it expects to open 24 new stores and create around 2,500 jobs across Australia and New Zealand. The company joins a growing list of major Australian businesses that have recently announced plans to move some operations offshore.
Woolworths is in talks with staff after announcing it will offload hundreds of jobs following the release of a plan to simplify operations and cut costs. The supermarket giant has not disclosed the number but roughly 10,000 head office staff are affected.
The supermarket giant has not revealed exactly how many of its 10,000 or so head office employees will be impacted. But hundreds of jobs across teams such as IT and Finance could be at risk.
Woolworths Cites Efficiency and Competition
Woolworths said the move is part of the company's efforts to stay competitive now that international players are making inroads into Australian retail. The retailer stated it had retained regional teams, and long-standing managed service contracts in Asia throughout a number of years, as well as continually reassessing these operations to tap into global capabilities while reducing costs.
A company spokesman said: We review these regularly to make sure we are accessing global best practice and keeping our costs low so we can pass on the best value for money to our customers.
Job Changes Follow Cost-Saving Strategy
Woolworths said the announcement is part of its work with creating a more efficient and leaner business. Chief executive Amanda Bardwell said in September last year that the company was refocusing on creating long-term sustainable growth, targeting $400 million in savings at back office costs.
Woolworths is the latest big Australian player to announce plans to off-shore some of its operations. NAB, Telstra and Officeworks recently announced similar moves citing cost pressures and efficiency aims.
While new stores and jobs are still expected
In addition to the termination of corporate roles, Woolworths said it forecasted 24 new stores opened in the next year. The company said these new locations are expected to generate around 2,500 jobs in Australia and New Zealand. The group employs about 202,000 people and has 1,715 stores in Australia and New Zealand (Woolworths supermarkets, Metros, Big W and Petstock) according to Woolies' annual report for 2025.
Shares Rise as Investors React
The Woolworths shares rose 64 cents, or 1.75%, to $37.12 by midday trade after the report of the planned offshoring program.
Investors have been keeping a very close eye on the shares this year following second-quarter earnings results from February surpassing expectations for the retailer. Reported net profit in the first half fell by 49% to $366 million largely because of the hit from a $485 million provision for remediation costs associated with underpayment of staff.
Earlier this year, Woolworths also acknowledged a multi-year rollout of artificial intelligence tools was underway, with two-thirds of support office employees utilising Gemini weekly.
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