A prominent grocery chain is considering laying off over 150 positions due to a lackluster Christmas season. Asda is looking to reduce expenses and streamline management following a disappointing holiday performance, leading to struggles in maintaining market share.
The company experienced a 4.2% decline in festive sales this year, with its market share falling to 11.4% in the 12 weeks leading up to December 28, marking a multi-year low. Consequently, Asda is proposing cuts to more than 80 managerial roles and expects an impact on numerous warehouse employees.
While Asda faces these challenges, competitors like Tesco and Sainsbury’s saw sales growth during the Christmas period. The exact number of job cuts remains uncertain, but discussions on redundancies are ongoing. The GMB union is actively supporting affected staff through collective consultations and individual meetings at various distribution centers and depots.
Amid the proposed changes, Asda aims to restructure its transport operations by establishing regional hubs and enhancing parcel-handling services with the help of Evri. The company currently handles 28 million parcels annually but struggles to meet demand.
An Asda representative stated that the restructuring plans aim to streamline operations by eliminating redundant tasks, enhancing regional flexibility, standardizing work procedures, and reducing reliance on external support services.
In an internal memo obtained by the Telegraph, Asda informed employees that fewer regional managers would be required as they consolidate sub-regions from 30 to 22, emphasizing the challenges of organizational change. Asda, the UK’s third-largest supermarket chain, previously faced backlash for abrupt layoffs of nearly 500 employees in November without prior consultation.
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