Following a disappointing Christmas period, a major supermarket is considering redundancies for over 150 positions. Asda, aiming to reduce costs and improve efficiency after a lackluster holiday season, has seen a decline in market share.
The supermarket experienced a 4.2% drop in festive sales, leading to a market share decrease to 11.4% in the 12 weeks leading up to December 28, marking its lowest level in years.
Consequently, Asda is looking to cut over 80 management roles and potentially impact numerous warehouse workers. In contrast, Tesco and Sainsbury’s saw an increase in sales during the Christmas period.
While the exact number of job losses is uncertain, consultations for redundancies are underway. The GMB union is supporting affected staff through collective discussions and individual meetings in various locations.
The union assured distribution workers of their assistance during the restructuring process initiated by Asda. Plans include reorganizing transport operations with regional hubs and parcel-handling improvements by involving Evri due to overwhelming demand.
An Asda spokesperson communicated that the restructuring aims to enhance operational efficiency by eliminating redundant tasks, enhancing regional adaptability, standardizing work procedures, and reducing dependence on agency and haulier services.
In a memo obtained by the Telegraph, Asda announced the reduction of regional managers needed to oversee stores by consolidating sub-regions. The memo acknowledged the challenges of change and the unfortunate necessity of parting ways with some colleagues.
As the third-largest supermarket chain in the UK, Asda faced backlash previously for layoffs in November, where nearly 500 employees were let go without a consultation period.
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