A leading supermarket is considering cutting over 150 positions due to a disappointing Christmas season. Asda is looking to reduce costs and restructure management following below-par holiday sales, leading to a decline in market share.
Festive sales at Asda dropped by 4.2% this year, with its market share falling to 11.4% in the 12 weeks leading up to December 28, marking a significant decrease compared to previous years.
As a consequence, the company is planning to trim over 80 management roles and potentially impact several warehouse workers. Meanwhile, competitors like Tesco and Sainsbury’s saw an increase in sales during the Christmas period.
The exact number of job cuts is still uncertain, but discussions on redundancies are ongoing. The GMB trade union is actively supporting affected employees through collective consultations and individual meetings at various distribution centers and depots.
In response to the proposed changes, a message from the union reassured distribution workers of their support during this uncertain time. As part of the restructuring plans, Asda aims to enhance operational efficiency by restructuring transport operations with regional hubs and involving Evri for parcel-handling to address the high demand for processing 28 million parcels annually.
An Asda spokesperson mentioned that the restructuring initiatives aim to streamline operations by eliminating duplicated tasks, enhancing regional flexibility, establishing consistent work methods, and reducing reliance on temporary staffing.
A memo obtained by The Telegraph disclosed that Asda intends to decrease the number of regional managers needed to oversee stores by consolidating sub-regions. The memo acknowledged the challenges of change and the necessity of parting ways with some colleagues.
Asda, the UK’s third-largest supermarket chain, faced backlash previously for laying off nearly 500 employees without a consultation period in November.