A leading supermarket is considering over 150 job redundancies following a disappointing holiday season. Asda aims to trim expenses and streamline operations due to lackluster Christmas sales, resulting in a decline in market share. The festive period saw a 4.2% drop in Asda’s sales and a decrease in market share to 11.4%, the lowest in years.
In response, the retailer plans to cut more than 80 management positions and potentially impact several warehouse workers. However, unlike Asda, Tesco and Sainsbury’s experienced sales growth during the same period.
The exact number of job losses is uncertain, but redundancy consultations are underway, according to GMB reports. The trade union is supporting affected members by representing them in collective consultations and individual meetings at distribution centers and depots.
Asda is contemplating restructuring transport operations by establishing regional hubs and addressing parcel-handling concerns by partnering with Evri. The company, currently processing 28 million parcels annually, is struggling to meet demand.
An Asda spokesperson mentioned that the restructuring plans aim to enhance operations by reducing duplicated tasks, enhancing regional flexibility, standardizing work procedures, and decreasing reliance on agency and haulier support.
A memo obtained by The Telegraph revealed that Asda would reduce the number of regional managers to oversee stores as they consolidate sub-regions. The company acknowledged the challenges of change and the necessity to part ways with some colleagues.
As the third largest UK supermarket chain, Asda faced backlash for its previous round of layoffs in November, where nearly 500 staff members were let go without a consultation period.