It has been announced that Grant O’Brien the chief executive of Australia’s biggest supermarket chain, Woolworths, has resigned.

Mr O’Brien resigns after almost four years ahead of plans to cut 1,200 jobs as part of a “strategic change”.

After the supermarket saw its first-half profits drop, it announced plans to bring back customers from rivals by cutting prices and improving stores.

In a statement, Mr O’Brien said: "The recent performance has been disappointing and below expectations. I believe it is in the best interests of the company for new leadership to see these plans to fruition."

Woolworths have also announced that Penny Winn, head of retail services is also quitting and they have started looking for a new chief executive.

Figures show that, following the news, shares in Woolworths increased by 2.4%.