A leading supermarket is facing the possibility of cutting over 150 jobs due to disappointing Christmas sales. Asda is looking to reduce costs and streamline its operations following a challenging holiday season that saw a decline in both festive sales and market share.
The supermarket experienced a 4.2% decrease in festive sales this year, leading to a drop in market share to 11.4%, its lowest level in recent years. As a result, Asda is considering cutting over 80 management positions and potentially impacting 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 not confirmed, Asda has initiated redundancy consultations. The GMB trade union is supporting affected members through collective consultations and individual meetings at various distribution centers and depots.
One proposed restructuring plan involves setting up regional hubs for transport operations, while another focuses on parcel handling with the involvement of Evri. Asda, which currently processes 28 million parcels annually, is struggling to meet demand.
An Asda spokesperson stated that the restructuring plans aim to enhance efficiency by eliminating duplicated tasks, enhancing regional flexibility, standardizing work processes, and reducing reliance on external support.
According to a memo obtained by the Telegraph, Asda is planning to reduce the number of regional managers overseeing stores by consolidating sub-regions. The memo acknowledged that change is challenging and mentioned the departure of some colleagues.
As the third largest supermarket chain in the UK, Asda previously faced criticism for laying off nearly 500 staff members without a consultation period in November last year.