A leading supermarket is facing the possibility of cutting over 150 positions due to a disappointing holiday season performance. Asda is looking to reduce costs and streamline its management structure following a decline in Christmas sales by 4.2% this year, resulting in a decrease in market share to 11.4%.
The company is considering slashing more than 80 management roles and impacting several warehouse workers as a consequence of the poor performance. In contrast, Tesco and Sainsbury’s saw an increase in sales during the festive period.
Although the exact number of job cuts is not confirmed, Asda has initiated redundancy consultations, with trade union GMB offering support to affected staff. The union is actively involved in collective consultations and individual meetings at distribution centers and depots.
As part of the restructuring plans, Asda is looking to establish regional hubs for transport operations and involve Evri in parcel-handling operations to cope with the high parcel volume of 28 million per year. The supermarket aims to enhance operational efficiency and reduce dependency on external support.
An Asda spokesperson mentioned that the restructuring plans aim to eliminate duplicated tasks, enhance regional flexibility, standardize work processes, and reduce reliance on external support.
In a memo obtained by the Telegraph, Asda informed employees about the reduction in regional managers required to oversee stores as they consolidate sub-regions. The company acknowledged the challenges of change and expressed regret over the necessity of letting go of some colleagues.
Facing criticism over previous rounds of redundancies, Asda, the UK’s third-largest supermarket chain, is navigating the impact of the latest restructuring decisions.
