Woolworths Group (ASX:WOW) expects to generate roughly AU$400 million in annualized gross cost savings by the end of the calendar year 2025 as a result of the retailer's efforts to "simplify" its above store Support Office, according to a Wednesday filing with the Australian bourse.

Chief Executive Amanda Bardwell said this is on top of the store and supply chain productivity program designed to partly offset inflation.

As part of improving operational productivity, Woolworths has taken various steps to "simplify the way we work," such as by rejigging the leadership teams of its food businesses.

The retailer's shares were down almost 1% in recent Wednesday trade.