A leading supermarket is considering laying off more than 150 employees due to poor performance during the recent holiday season. Asda is looking to reduce expenses and simplify its management structure following a disappointing Christmas period where it struggled to retain market share.
The supermarket chain experienced a 4.2% decline in festive sales this year, leading to a decrease in its market share to 11.4% in the 12 weeks leading up to December 28, marking its lowest level in several years. Consequently, Asda is proposing cuts to over 80 management positions, with potential impacts on warehouse staff as well.
In contrast, Tesco and Sainsbury’s saw an increase in sales over the Christmas period. The exact number of job losses at Asda is yet to be confirmed; however, redundancy consultations are underway, as reported by GMB news. The GMB trade union is providing support to affected members during the process, representing them in collective discussions and individual meetings at distribution facilities.
Amid restructuring plans involving transport operations and parcel-handling, Asda is looking to partner with Evri to manage its high parcel volume, currently at 28 million parcels annually. According to an Asda spokesperson cited in The Grocer, the restructuring aims to streamline operations by eliminating redundancy, enhancing regional flexibility, standardizing work practices, and reducing reliance on external support.
A memo obtained by the Telegraph revealed that Asda intends to reduce the number of regional managers required to oversee stores by consolidating sub-regions. Despite acknowledging the challenges of change, the memo mentioned the necessity of parting ways with some colleagues.
Asda, the UK’s third-largest supermarket chain, faced backlash previously for laying off nearly 500 employees without prior consultation in November last year.