A leading supermarket is facing the possibility of cutting over 150 jobs due to disappointing results during the recent Christmas period. Asda is looking to reduce expenses and streamline its management structure following a subpar performance over the holiday season, which led to a decline in market share.
The festive sales at Asda dropped by 4.2% this year, with the supermarket’s market share falling to 11.4% in the 12 weeks leading up to December 28, marking a significant decrease compared to previous years. Consequently, the company is considering eliminating more than 80 management positions and potentially impacting warehouse staff as well.
In contrast, Tesco and Sainsbury’s saw an increase in sales during the Christmas season, showing a mixed picture in the retail sector. The exact number of job losses at Asda is still uncertain, but consultations for redundancies are in progress. The GMB trade union is actively supporting affected employees through collective discussions and individual meetings at various distribution centers and depots.
As part of the restructuring plans, Asda is looking to revamp its transport operations by establishing regional hubs and enhancing parcel-handling processes with the assistance of Evri. The company, currently processing 28 million parcels annually, is struggling to meet the rising demand.
An Asda representative explained that the restructuring aims to optimize operations by reducing redundant tasks, enhancing regional flexibility, standardizing work procedures, and decreasing reliance on temporary and external support. In a communication shared with employees, Asda revealed a reduction in the number of regional managers needed to oversee stores, consolidating sub-regions from 30 to 22.
Acknowledging the challenges of change, the memo expressed regret over the necessity of parting ways with some colleagues. The supermarket chain, ranking third in the UK, previously faced backlash for laying off nearly 500 staff members without a consultation period in November last year.