The Co-op is rolling out a new store management structure that could impact more than 2,000 shop floor workers.
The food retailer is removing the role of team manager, with those currently in this position being asked to move to a lower-paid title or take redundancy.
It comes as part of plans to move the business from a four-tier management structure to three.
The roles in the three-tier management will be a store manager, team leader and customer team member.
Staff were reportedly told this week about the plans, according to The Grocer.
Team managers will have 45 days to decide whether to accept the lower-paid team leader position or be made redundant.
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© REUTERSStaff were told about the changes this week, according to reports
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If they choose to become a team leader, they will be given an allowance for 26 weeks equivalent to the difference in pay between that and their old job title.
Current team managers can also apply for a store manager trainee role.
A spokesperson from the Co-op told The Mirror there would not be any compulsory redundancies and all affected staff will be offered alternative roles.
The change in store structure is already in place at 300 Co-op stores in the UK.
It comes after the Co-op confirmed a £130million investment programme for its stores in September 2020, with plans to create up to 1,000 jobs.
The plans also include opening or extending 65 stores in the coming months.
A Co-op statement said: "Our aim at Co-op is to serve and support our communities, giving our customers the best possible shopping experience.
"As we move our stores over to a three-tier management structure, protecting jobs is a continuing key priority and we are pleased to be able to offer alternative positions to ALL the colleagues affected.
"These changes will free up store colleagues to give our customers great service from efficient and well-run shops."