Woolworths will be subject to an almost $1billion restructuring as the supermarket giant plans to cut 500 jobs in the lead up to a new operating model.

The company, which plans to separate its Big W department and online retailer Ezibuy, is slowing its store roll-out and closing underperforming shops.

The division gives Woolworths the potential to sell Ezibuy.

Recently hired chief executive Brad Banducci said the outcomes were the conclusion of five months of change since his appointment in February.

“Another 1000 people are expected to be moved within the business to improve accountability and help us better support our store teams and customers,” Mr Banducci said in a statement.

“Five months ago I said we would work hard to get customers to put us first, to improve our culture and rebuild momentum.

“Today’s announcement demonstrates both the progress we are making and our absolute commitment to act quickly to rebuild the business by doing the right thing by our customers, shareholders, team and suppliers.”