A prominent supermarket is considering cutting over 150 positions due to a disappointing holiday season. Asda is looking to reduce expenses and streamline operations following a lackluster Christmas performance that led to a decline in market share.
The festive sales for Asda decreased by 4.2% this year, resulting in a market share of 11.4% in the 12 weeks leading up to December 28, marking its lowest level in years. Consequently, the retailer is proposing cuts to more than 80 management roles, with potential impacts on warehouse workers as well.
In contrast, Tesco and Sainsbury’s saw an increase in sales during the Christmas period. The exact number of job losses is still unknown, but redundancy consultations are in progress. GMB, a trade union, is supporting affected members by representing them in collective consultations and individual meetings across distribution centers and depots.
In response to the restructuring plans, the union assured distribution workers of their support and commitment to safeguarding jobs. As part of the consultations, Asda intends to restructure transport operations by establishing regional hubs and address parcel-handling issues by involving Evri. The company processes 28 million parcels annually but struggles to meet demand.
An Asda spokesperson explained that the restructuring aims to enhance operational efficiency by eliminating redundant tasks, enhancing regional flexibility, standardizing work practices, and reducing reliance on external support.
In a memo obtained by the Telegraph, Asda executives informed employees that fewer regional managers would be required as they consolidate sub-regions. The memo acknowledged the challenges of change and expressed regret over the necessity of parting ways with some colleagues.
As the third-largest supermarket chain in the UK, Asda faced backlash for previous layoffs in November when nearly 500 staff members were let go without a consultation period.
