As a result of a disappointing Christmas period, a leading supermarket is considering cutting over 150 positions, putting them at risk of redundancy. Asda, facing challenges in maintaining market share, plans to implement cost-cutting measures and streamline its management structure following a decline in festive sales by 4.2% this year, leading to a drop in market share to 11.4%.
The proposed cuts include more than 80 management roles and potentially impacting several warehouse workers. In contrast, Tesco and Sainsbury’s saw an increase in sales during the Christmas season.
While the exact number of job losses is not confirmed yet, consultations for redundancies are ongoing. The GMB trade union is actively supporting affected members through collective consultations and individual meetings across distribution centers and depots.
Asda aims to restructure its transport operations by establishing regional hubs and enhancing parcel-handling services through partnering with Evri. The supermarket processes 28 million parcels annually but struggles to meet demand.
According to an Asda spokesperson, the restructuring plans aim to optimize operations by reducing redundancy, enhancing regional flexibility, standardizing processes, and reducing reliance on external support services.
In a memo shared with employees, Asda announced a reduction in the number of regional managers needed to oversee stores by consolidating sub-regions. The company acknowledged the difficulty of change and expressed regret over saying goodbye to some colleagues.
The supermarket chain, ranked as the third largest in the UK, faced backlash previously for a round of redundancies in November without a consultation period.