After a disappointing festive period where Christmas sales were down, Asda is proposing cuts to more than 80 management roles, while dozens of warehouse workers are also expected to be affected.
A major supermarket has placed more than 150 roles at risk of redundancy after a disappointing Christmas period.
Asda plans to cut costs and streamline management after a poor Christmas performance, as the supermarket has struggled to maintain market share.
Asda’s festive sales were down 4.2% this year, and its market share dropped to 11.4% in the 12 week run-up to December 28, which is its lowest level in many years.
As a result, the retailer is proposing cuts to more than 80 management roles, while dozens of warehouse workers are also expected to be affected.
It’s not a story across the board, though, as Tesco and Sainsbury’s both increased sales over the Christmas season.
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The total number of job losses is as yet unconfirmed, but redundancy consultations are under way, GMB news reports. Trade union GMB said it is supporting members throughout the process by representing staff in collective consultations and individual meetings across distribution centres and depots.
“For some of you, finding out that Asda are proposing to make big changes that may put your job at risk will leave you with many more questions than answers,” said a message from the union to distribution workers. “Your union will be by your side every step of the way and we will be doing all we can to protect jobs.”
While one consultation involves plans to restructure transport operations by setting up regional hubs, another concerns parcel‑handling and plans to enlist Evri. Asda currently processes 28 million parcels a year and cannot keep up with demand.
An Asda spokesperson told The Grocer the plans are intended to streamline operations by “reducing duplicated tasks, improving regional flexibility, creating more consistent ways of working, and lowering our reliance on agency and haulier support.”
In a memo obtained by the Telegraph, Asda bosses told workers that fewer regional managers would be needed to oversee stores as they were reducing 30 sub-regions to 22.
“Change is never easy and unfortunately we have had to say goodbye to a number of colleagues,” the memo said.
Asda, the third largest supermarket chain in the UK, faced criticism over its last round of redundancies in November last year when it laid off almost 500 staff members without a consultation period.
