A leading grocery chain is considering cutting over 150 positions due to disappointing sales during the holiday season. Asda is aiming to reduce expenses and streamline operations following a challenging Christmas performance that led 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. In response, the company is looking to eliminate more than 80 management roles and potentially impact several warehouse workers.
While Asda is facing these challenges, rivals Tesco and Sainsbury’s saw an increase in sales over the Christmas period, indicating mixed outcomes within the industry. The exact number of job cuts is still uncertain, but Asda has initiated redundancy consultations, with GMB providing support to affected employees during collective discussions and individual meetings.
The restructuring plans include changes in transportation operations by establishing regional hubs and involving parcel-handling operations with Evri. Asda processes approximately 28 million parcels annually but is struggling to meet demand.
An Asda spokesperson mentioned that the restructuring is aimed at enhancing efficiency by reducing redundant tasks, enhancing regional flexibility, standardizing work processes, and reducing reliance on external support services. According to a memo from Asda bosses obtained by the Telegraph, fewer regional managers will be required as the number of sub-regions is being reduced from 30 to 22.
Despite being the third-largest supermarket chain in the UK, Asda faced backlash previously for abrupt layoffs of nearly 500 employees without a consultation period in November last year.