A leading supermarket is considering over 150 job cuts due to a disappointing holiday season. Asda is looking to trim expenses and enhance efficiency following a subpar Christmas performance and a struggle to retain market share.
This year, Asda witnessed a 4.2% decline in festive sales, leading to a market share decrease to 11.4% in the 12-week period ending on December 28, marking its lowest level in several years. Consequently, the company is proposing reductions in over 80 managerial positions, with an impact expected on numerous warehouse employees.
However, the success story is different for Tesco and Sainsbury’s, both of whom saw sales growth during the Christmas period. While the exact number of job losses remains uncertain, redundancy discussions are ongoing. The trade union GMB is supporting affected members through collective consultations and individual meetings across various facilities.
In response to the restructuring plans, which involve regional hubs for transport operations and parcel handling improvements with Evri, Asda clarified that the changes aim to optimize operations by eliminating redundant tasks, enhancing regional flexibility, standardizing work processes, and reducing reliance on external support.
As per a memo from Asda’s leadership obtained by the Telegraph, a reduction in the need for regional managers is anticipated, with the consolidation of sub-regions. The memo acknowledged the challenges of change and the necessity to part ways with some colleagues.
Asda, the UK’s third-largest supermarket chain, faced backlash previously for laying off nearly 500 employees in November without a consultation period.