A leading supermarket is facing the possibility of over 150 job cuts following a disappointing holiday season. Asda is looking to reduce costs and simplify its management structure due to poor Christmas results and a decline in market share. The company experienced a 4.2% decrease in festive sales this year, leading to a market share of 11.4%, its lowest level in recent years.
To address the situation, Asda is considering eliminating more than 80 management positions and potentially impacting several warehouse employees. While Asda grapples with these challenges, competitors like Tesco and Sainsbury’s saw an increase in sales during the Christmas period.
The exact number of job losses is yet to be confirmed, but consultations for redundancies are underway, according to reports from GMB news. The trade union GMB is actively supporting affected members through collective consultations and individual meetings at various distribution centers and depots.
As restructuring plans unfold, Asda aims to establish regional hubs for transport operations and partner with Evri for parcel-handling to meet the high demand. The company processes 28 million parcels annually but struggles to keep pace.
An Asda spokesperson explained that the restructuring efforts are focused on enhancing operational efficiency by eliminating redundant tasks, improving regional flexibility, standardizing work processes, and reducing reliance on temporary staff and external hauliers.
In a memo obtained by The Telegraph, Asda informed employees that fewer regional managers would be required as the number of sub-regions is being reduced from 30 to 22. The memo acknowledged the challenges of change and expressed regret over the departure of some colleagues.
Asda, the UK’s third-largest supermarket chain, faced backlash for its previous round of job cuts in November, where around 500 employees were laid off without a consultation period.
