A leading grocery chain 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 saw a decline in sales and market share.
The supermarket experienced a 4.2% drop in festive sales this year, leading to a market share decrease to 11.4%, its lowest level in years. In response, Asda is proposing cuts to more than 80 management roles and expects warehouse staff to be impacted as well.
While Asda grapples with job cuts, rival retailers Tesco and Sainsbury’s saw sales growth during the Christmas period. The exact number of job losses at Asda is yet to be confirmed, but consultations for redundancies are underway with support from trade union GMB.
The restructuring plans involve changes in transport operations and parcel-handling services, including partnering with Evri. Asda’s aim is to enhance operational efficiency and reduce reliance on external support.
According to an Asda spokesperson, the restructuring initiatives are aimed at improving operational effectiveness by eliminating redundant tasks, enhancing flexibility, standardizing work processes, and reducing reliance on external support.
In a memo obtained by the Telegraph, Asda management informed employees about the need for fewer regional managers and the consolidation of sub-regions to increase efficiency. The memo acknowledged the difficulty of change and the impact on some colleagues.
Asda, the UK’s third-largest supermarket chain, faced backlash previously for laying off nearly 500 employees without prior consultation.