The Bradford-based grocer said it was making the move as it created 7,000 new jobs without a fixed monthly wage.
Morrisons said the new hourly-paid roles will be on the shop floor, with many on its butchery, bakery and fishmonger counters, and that those losing their managerial jobs could apply for shop floor level roles, where wages are £9 an hour.
“Whilst there will be a short period of uncertainty for some managers affected by these proposals we will be supporting them through this process,” said David Lepley, Morrisons group retail director.
He attempted to assuage the concerns about staff being taken off salaried roles by insisting that the new roles will have “greater flexibility”.
The shares, which were also downgraded by Goldman Sachs to ‘sell’ from ‘neutral’ on Thursday with the target price cut to 175p from 205p, were down 1% at 183.15p in afternoon trading.