A leading supermarket is facing the possibility of cutting over 150 positions due to a disappointing holiday season. Asda is looking to reduce expenses and simplify its management structure following a subpar performance during Christmas, leading to struggles in maintaining its market share.
The festive sales for Asda declined by 4.2% this year, resulting in a market share decrease to 11.4% in the 12 weeks leading up to December 28, marking its lowest point in several years. Consequently, the company is considering eliminating more than 80 management roles and potentially impacting numerous warehouse workers.
While Asda grapples with these challenges, competitors like Tesco and Sainsbury’s experienced sales growth during the Christmas period. The exact number of job cuts is still uncertain, but redundancy discussions are currently ongoing. The GMB union is actively supporting affected employees through collective consultations and individual meetings.
As part of restructuring initiatives, Asda is contemplating changes to its transport operations by establishing regional hubs and enhancing parcel-handling processes by partnering with Evri. The company processes approximately 28 million parcels annually and is struggling to meet demand.
An Asda spokesperson explained that the restructuring plans aim to enhance operational efficiency by eliminating redundant tasks, enhancing regional flexibility, standardizing work practices, and reducing reliance on external support.
In an internal memo obtained by The Telegraph, Asda informed employees about the reduction in the number of regional managers needed to oversee stores, as the company moves from 30 sub-regions to 22. The memo acknowledged the challenges of change and the necessity of bidding farewell to some colleagues.
Asda, the UK’s third-largest supermarket chain, previously faced backlash for laying off nearly 500 employees without a consultation period in November last year.