A leading grocery chain is facing the potential loss of over 150 positions due to a disappointing holiday season. Asda is looking to reduce expenses and streamline its management structure following a lackluster Christmas performance that has impacted its market share.
The retailer experienced a 4.2% decline in festive sales this year, with its market share dipping to 11.4% in the 12-week period leading up to December 28, marking a significant decrease compared to previous years.
To address the situation, Asda is considering cuts to more than 80 managerial positions and is expected to impact several warehouse employees as well. Meanwhile, Tesco and Sainsbury’s saw an increase in sales during the Christmas period, unlike Asda.
While the exact number of job cuts is still uncertain, redundancy consultations are underway, as reported by GMB news. The trade union GMB is actively supporting its members by representing them in collective consultations and individual meetings at distribution centers and depots.
In response to the proposed changes, the union assured distribution workers that they would receive full support throughout the process to safeguard their jobs. Asda’s restructuring plans involve setting up regional hubs for transport operations and implementing parcel-handling strategies in collaboration with Evri, given the high demand of processing 28 million parcels annually.
An Asda spokesperson stated that the restructuring aims to enhance operational efficiency by eliminating redundancies, enhancing regional flexibility, standardizing work practices, and reducing dependence on external agency and haulier support.
In a communication obtained by the Telegraph, Asda management informed employees that fewer regional managers would be required as the number of sub-regions was being reduced from 30 to 22, acknowledging the challenges of organizational changes.
Previously, Asda faced criticism for its abrupt layoff of nearly 500 employees in November without a consultation period. As the third-largest supermarket chain in the UK, Asda’s recent decisions have sparked concerns and scrutiny from various stakeholders.