A leading supermarket is considering cutting more than 150 positions due to underwhelming performance during the recent holiday season. Asda, in response to its disappointing Christmas sales and market share decline, is planning cost reductions and management streamlining.
The festive sales at Asda dropped by 4.2% this year, leading to a market share decrease to 11.4%, the lowest in several years. Consequently, over 80 management roles are proposed to be slashed, with potential impacts on warehouse staff as well.
While Asda faces these challenges, Tesco and Sainsbury’s saw an increase in sales over the Christmas period. The exact number of job losses is uncertain currently, but redundancy consultations are ongoing, as reported by GMB news. The GMB trade union is offering support to affected employees through collective consultations and individual meetings.
Asda is contemplating restructuring its transport operations by establishing regional hubs and enhancing parcel-handling efficiency with the involvement of Evri, as it currently struggles to keep pace with the demand of processing 28 million parcels annually.
An Asda spokesperson mentioned that the restructuring plans aim to streamline operations by eliminating duplicated tasks, enhancing regional flexibility, standardizing work processes, and reducing dependence on agency and haulier assistance.
In a memo obtained by the Telegraph, Asda executives informed employees about the reduction of regional managers needed to oversee stores by consolidating sub-regions. Acknowledging the challenges, the memo expressed the necessity of parting ways with some colleagues.
As the third largest UK supermarket chain, Asda faced backlash for its previous round of job cuts in November, where nearly 500 employees were laid off without a consultation period.