News Beat
Major supermarket to axe 150 jobs in huge shake-up after plummeting Christmas sales
ASDA is expecting to axe more than 150 jobs to cut costs after suffering a drop in sales over Christmas.
The troubled supermarket is preparing to let go of more than 80 managers and dozens of warehouse staff as redundancy negotiations take place.
Employees of its distribution centres have been placed at risk under following plans to outsource its parcel operations to the delivery company Evri.
An Asda spokesperson said: “We are proposing to introduce a new regional structure for our transport teams to simplify our distribution network and our deliveries to stores.
“This involves creating eight regional hubs with a regional transport office coordinating activity across each region.
“As a result, fewer than half of our stores can offer next-day parcel collection – a service that customers now expect as standard from all major retailers.
“By partnering with Evri, all 1,200 Asda locations will be able to offer next-day collection and returns, providing customers with a quicker and more convenient service.
“We are committed to supporting colleagues through any proposed change, including clear communication, consultation, and appropriate support measures. “
Asda’s chairman, Allan Leighton, has had to rebuild the retailers market share after it fell to 11.4pc in the 12 weeks to December 28.
The cost cuts follow a drop in sales by 4.2pc during Christmas – the only major supermarket to suffer a decline in sales over the period.
Its significant decline in market share contrast starkly with its rivals Tesco’s and Sainsbury’s, who both won over more customers during Christmas.
This new low for the third largest UK supermarket has led to more than 150 jobs at risk of redundancy to cut costs.
Job cuts are expected to take place at its distribution centres, alongside employees managing the deliveries across distribution networks.
The spokesperson said that its distribution network, which handles 28 million parcels a year, was “never designed for this level of demand”.
Plans to outsource some parcel operations to the delivery company Evri have placed Asda’s logistics staff in Yorkshire at risk.
This follows a series of other job cuts that have spread across the business in the past 18 months.
The retailer made a large number of in-store managers redundant in July – to reduce its middle management.
Following a botched IT upgrade, it also axed hundreds of IT workers last year.
Asda’s market share has seen a decline since its purchase by the the private equity giant, TDR Capital, and Mohsin and Zuber Issa in 2021.
At the time, the retailer’s market share stood at 14.8pc, but has declined now to 11.4pc during the Christmas period.
The British supermarket chain has also faced additional pressure from the leading rating agency Fitch, who downgraded the business to junk status last year.
This rating has threatened the supermarket with higher borrowing costs.
With two separate consultations under way, Asda said that these could help improve the business’s efficiency and minimise the possibility of future depots closures.
The first consolation relates to Asda’s 21 depots and each of these depots independent transport management teams.
The proposed structure change would see the creation of 8 ‘regional control hubs’, creating a more centralised and scalable approach to transport management.
