Automation wipes out Woolworths’ jobs

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Supermarket giant Woolworths has announced it will build two new automated grocery distribution centres, resulting in a number of redundancies.

While Woolworths did not say precisely how many roles would be affected by the site closures, which will take place over the next five years, it said the redundancies would cost about $176 million in payouts.

The new centres will be located south west of Sydney and are replacing three existing facilities, costing approximately $800 million to build over four years.

Update:

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Up to 1350 roles will be made redundant according to CEO Brad Banducci, accounting for about 1% of the company’s workforce:

About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.