Major shake-up at Asda: managers at risk
A major UK supermarket chain with more than 1,200 stores is preparing to cut around 150 jobs and remove management roles after a disappointing Christmas trading period.
Asda has placed over 150 positions at risk of redundancy following a 4.2% drop in festive sales, which pushed its market share down to 11.4% in the 12 weeks to December 28 — the retailer’s lowest level in years. It was the only major grocer to report falling Christmas sales, while rivals Tesco and Sainsbury’s attracted more customers.
The proposals include axing more than 80 management posts and dozens of roles across warehouse and logistics operations. Redundancy consultations are under way across multiple distribution centres to decide the final number of job losses.
Union involvement
Trade union GMB said it is representing affected members through collective and individual consultations.
“For some of you, finding out that Asda are proposing to make big changes that may put your job at risk will leave you with many more questions than answers,” the union told distribution workers, adding it would “be by your side every step of the way.”
Two restructuring programmes
Asda confirmed that two separate reviews are taking place across its 21 depots:
1. Transport operations restructure
The supermarket plans to create eight regional hubs overseen by new coordinating offices.
An Asda spokesperson said the shake-up would “reduce duplicated tasks, improve regional flexibility, create more consistent ways of working, and lower our reliance on agency and haulier support.”
2. Parcel-handling overhaul
Asda processes around 28 million parcels annually but said its current network cannot handle the volume. The company intends to outsource parcel services to courier firm Evri, allowing all 1,200 stores to offer next-day collection and returns — a service currently unavailable in more than half of Asda’s estate.
Workers in Yorkshire are expected to face particular uncertainty under the plans.
Broader challenges
Asda’s performance has deteriorated since its 2021 takeover by TDR Capital and Mohsin and Zuber Issa, when the chain held a 14.8% market share. Despite the return of former chairman Allan Leighton, who previously helped revive the business in the 1990s, the retailer has continued to lose ground.
The company has already undergone several rounds of cuts over the past 18 months, including reductions to in-store management roles last July and hundreds of redundancies in its IT division following a failed technology upgrade.
Financial pressures have also mounted. Ratings agency Fitch pushed Asda further into junk status last year, citing concerns over borrowing costs. Meanwhile, a €1.3bn term loan from parent firm Bellis Finco has traded as low as 88 cents on the euro.
Asda says the latest proposals are part of efforts to modernise operations, boost efficiency and respond to changing customer behaviours. GMB urged affected staff to seek union support and said it will continue to engage with the company throughout the consultation period.
