A leading grocery chain is considering over 150 job cuts due to a disappointing holiday season. Asda is looking to reduce expenses and streamline operations following poor Christmas sales, leading to a decline in market share.
The festive period saw Asda’s sales decrease by 4.2%, with its market share falling to 11.4%, the lowest in years. Consequently, the company is proposing cuts to over 80 management positions and expects warehouse staff to be impacted as well.
While Asda faces challenges, competitors such as Tesco and Sainsbury’s saw an increase in sales during the Christmas season. The exact number of job losses is yet to be confirmed, but redundancy consultations are underway with support from the GMB trade union.
As part of restructuring efforts, Asda plans to revamp transport operations by establishing regional hubs and enhancing parcel-handling with the help of Evri. The company processes 28 million parcels annually but struggles to meet demand.
An Asda spokesperson mentioned that the restructuring aims to improve efficiency by eliminating redundant tasks, enhancing regional flexibility, standardizing work processes, and reducing reliance on external support.
In a memo obtained by the Telegraph, Asda informed employees that fewer regional managers would be required as the number of sub-regions was being reduced. The company acknowledged the difficulty of change and the necessity of parting ways with some colleagues.
Asda, the UK’s third-largest supermarket chain, faced backlash for its previous round of layoffs in November, where nearly 500 employees were let go without a consultation period.
