Supermarket Cutting 150 Jobs in Major Overhaul Following Decline in Christmas Sales

The recent sales decline over Christmas has significantly impacted Asda, leading to an impending reduction of over 150 jobs. The supermarket chain plans to eliminate more than 80 management positions, along with numerous warehouse roles, as part of a major cost-cutting overhaul.

Job Cuts Amid Declining Sales

Asda has become the only major UK supermarket to report a sales drop during the holiday season, with a decrease of 4.2%. This decline further exacerbates its current market share, which has fallen to 11.4%, down from 14.8% in 2021.

Outsourcing Parcel Operations

The restructuring includes outsourcing parcel operations to delivery service Evri. This decision has put logistics personnel, especially those in Yorkshire, at risk of redundancy. Asda’s spokesperson emphasized that their current parcel processing network was never intended to handle the volume it currently does—over 28 million parcels annually.

Impact on Employees

To enhance customer service, Asda aims to ensure all 1,200 store locations can provide next-day parcel collection and returns through the partnership with Evri. The spokesperson added that Asda is dedicated to supporting employees during this transition, focusing on clear communication and consultation.

Continuing Challenges

• Asda’s market share has declined steadily since its acquisition by TDR Capital and the Issa brothers in 2021.
• Other recent job cuts have included in-store managers and IT staff, following a problematic IT upgrade.
• The rating agency Fitch has downgraded Asda’s status to junk, affecting its borrowing costs.

The cuts are not limited to parcel operations. Asda is also reviewing its entire transportation structure, with plans to create eight regional hubs aimed at improving efficiency in secondary deliveries to stores. This proposed model seeks to streamline operations and reduce reliance on agency support.

As Asda navigates these challenges, the focus remains on revitalizing its market position and restoring customer confidence while implementing necessary changes to its operational structure.