Woolworths confirms restructure, closes two stores (2025)

Woolworths has confirmed a restructure that will see some senior staff roles changed, as well as the closure of two Auckland supermarkets.

The supermarket chain had been consulting on changes to its operating model across the country.

It said the key difference under the new model was that staff would "collaborate together on tasks" rather than working separately in departments.

It said this should mean more people on the shop floor to help customers.

But Workers First Union, which represents some Woolworths staff, said it would mean the loss of income for thousands of workers.

Rudd Hughes, national retail secretary, said it would mean the loss of all department management and duty supervisor roles.

People currently in those roles could have pay cuts and lose hours.

"A bakery or butchery manager will potentially face a decrease of about $15,000 to $17,300 per year, while other department managers will face average pay decreases ranging from nearly $10,000 to $11,700 per year under this proposal," he said.

"While some people in those roles will opt for redundancy, it's not a viable option in smaller or more remote regions without comparable jobs on offer.

"For those people, it could be absolutely immiserating. Imagine you've worked for your local Woolworths in a specialist role and reached a senior pay band after 20 years on the shop floor - now, many will be back to square one and facing significant financial hardship as a result of the restructure."

One Woolworths worker whose role was being disestablished said some experienced butchers and bakers would leave rather than take a pay cut.

"We're losing tons of experience in these positions, and I think customers will inevitably notice the difference in our products."

The union wanted Woolworths to protect the pay and conditions for staff in roles being disestablished.

Woolworths said the new model would mean clearer leadership pathways.

"We have heard a lot of useful and considered feedback from our team and Workers First Union and we've taken this on board - making changes like the introduction of a new tier of store leadership, ensuring we have the right number of leaders in our stores supporting our team and customers at peak times and ensuring leadership cover for leave and absences.

"We'll continue to learn and adjust as we pilot the new operating model and we'll include those findings in our consultation approach."

A spokesperson said from May the new model would be piloted in the upper North Island supermarkets.

"Our priority now is working with our team to support them to transition into the new roles that will be created. To help with this, we'll be investing $6.6 million in training and upskilling team members."

He said Woolworths had also told staff that Blockhouse Bay and Māngere Mall stores would not be included because they were to close.

"The leases for both of these stores end later this year and we've made the difficult decision not to renew our leases in these locations. This is driven by declining customer demand locally, and considering the ongoing tough economic environment we believe the most responsible path forward is to consolidate in these areas.

"We're sharing this news with our Blockhouse Bay and Māngere Mall teams well ahead of the stores closing to make sure our teams understand all of their options for continuing their careers with us through redeployment in nearby stores.

"We know this will be disappointing news for our local customers and team. Our Blockhouse Bay store will be open until November and our Māngere Mall store will be open until September. Over the coming months we'll be working closely with each of our team members to find suitable new roles wherever we can and ensure a smooth transition."

Copyright © 2025, Radio New Zealand

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