Woolworths Group (ASX:WOW) will move hundreds of finance, human resources, and information technology roles offshore as part of a cost-cutting and efficiency drive aimed at improving competitiveness against rivals including Amazon, Aldi and Costco, the Australian Financial Review reported Tuesday.

The move reflects supermarkets' efforts to manage shrinking margins caused by inflation, supply chain disruptions, and rising supplier costs, while also meeting demand from shoppers for lower-cost groceries.

The company said it is consulting staff this week and broadening global managed service partnerships, with most of the affected positions likely in information technology.

The company's Chief Executive Amanda Bardwell has cut AU$400 million in costs over the past year and reduced the range of products sold by the supermarket group in a bid to improve profitability.

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