As a result of underwhelming Christmas sales, a significant supermarket is considering cutting over 150 positions to streamline operations and reduce costs. Asda experienced a 4.2% decline in festive sales this year, leading to a market share decrease to 11.4% in the 12 weeks leading up to December 28, marking its lowest level in years.
The supermarket plans to eliminate more than 80 management roles and expects warehouse employees to be impacted as well. While Asda faces these challenges, Tesco and Sainsbury’s saw an increase in sales during the holiday season.
There is ongoing redundancy consultation, although the exact number of job losses is yet to be confirmed. The GMB trade union is supporting affected members, providing representation in collective consultations and individual meetings at distribution centers and depots.
Asda’s restructuring plans involve the establishment of regional hubs for transport operations and partnering with Evri for parcel-handling due to the overwhelming demand. The company aims to enhance operational efficiency by reducing duplicated tasks, enhancing regional flexibility, standardizing work methods, and reducing reliance on external support.
A memo obtained by the Telegraph revealed that Asda intends to reduce the number of regional managers needed to oversee stores by consolidating sub-regions. The supermarket acknowledged the challenges of change and expressed regret over saying goodbye to some colleagues.
This move follows criticism faced by Asda for its previous round of job cuts in November, where nearly 500 employees were let go without a consultation period.