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Thousands of Asda jobs at risk as supermarket proposes major restructure

Joanna Bourke
·2-min read

Watch: Thousands of jobs impacted as Asda launches major restructuring

Around 5000 employees at grocer Asda are being consulted over a major restructuring, which puts a number of roles at risk.

The supermarket chain said it is looking at proposals to transform parts of its business “in response to the changing demands of the retail sector”. Like rivals, it has seen online demand jump during the pandemic.

Plans the retailer is looking at include closing home shopping warehouses in Dartford and Heston, impacting 800 staff. Future online orders in the South would be picked from local stores instead.

It is also considering reducing back office staff, potentially impacting 3000 roles. Changes to store-level management roles are also being looked at.

Asda will enter formal consultations with around 5,000 staff potentially impacted, out of a total workforce of 145,000.

<p>Asda has proposed a number of changes to the business</p> (REUTERS)

Asda has proposed a number of changes to the business

(REUTERS)

If the plans go ahead, the priority will be to move as many staff as possible into newly created roles within Asda, with redundancy the last option.

The company intends to create 4500 new jobs in online operations this year.

The Issa brothers and TDR Capital, which have bought Asda in a £6.8 billion deal that remains subject to approval from the Competition & Markets Authority, are not involved in the proposed changes.

Roger Burnley, chief executive of Asda, said: “As customer habits continue to change we have to evolve our business to meet these demands and ensure our business is strong and sustainable for the long term.”

He added: “We know that these proposed changes will be unsettling for colleagues and our priority is to support them during this consultation process. Our plans to transform the business will result in more roles being created than those we propose to remove and our absolute aim is to ensure as many colleagues as possible stay with us, as well as creating the opportunity to welcome new people to our business.”

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