The troubled supermarket chain Somerfield is to axe 50 IT staff from its Bristol head office, as part of a programme of cut-backs.
The chain, which has faced difficulties since its takeover of Kwik Save two years ago, is struggling to turn around plummeting profits.
Fifty IT staff have been handed their notice, following the group's decision to sell off unprofitable stores.
The group has cut 70 freelance staff from its IT department since the merger and now relies entirely on its 330-strong in-house team.
"We have maintained our capability to deliver services and systems. We are focusing on key areas of service provision and projects," said Tom Scott, head of central systems at Somerfield.
Last week, Computer Weekly revealed that Somerfield is putting its plans to move to SAP R3 on hold while it examines cheaper alternatives.
The group is going through a period of uncertainty following the sudden ousting of its chairman David Simons and the appointment of John von Spreckelsen from Budgens as his replacement.
However, Somerfield, which completed the integration of its IT systems with Kwik Save in February this year, said that the changes would not interrupt its IT programme.