Asda cuts jobs and demands three-days-a-week return to office
Asda has announced job cuts and asked its staff to return to the office three days a week in the latest move in its turnaround plan.
In an internal email on 5 November, the grocer said it was changing its office attendance policy at its George House site in Leicester as well as its Asda House and Britannia House offices in Leeds, in a bid to strengthen Asda’s position for 2025, according to The Telegraph.
Chair Lord Rose added that the supermarket would cut a number of head office roles to “remove duplication and simplify structures”, although did not say how many roles would be cut.
The move comes only a few weeks after Mohsin Issa officially stepped down from the helm of Asda, with Lord Rose taking over as his interim replacement as the company continues its three-year search for a chief executive.
Rose said: “Change is never easy and is unsettling, but the executive team believe it is necessary to enter 2025 in a stronger position, fully focused on serving our customers, delivering our ambitions and driving long-term growth.”
Asda turnaround plans continues
The grocer is currently in the midst of a turnaround plan.
Asda’s share of the grocery market has continued to drop, according to Kantar, with sales down by 5.6 per cent year on year. Its share of the market fell to 12.6 per cent in the 12 weeks to 1 September, down from 13.8 per cent.
“We also know that there are some areas where we can and need to improve,” chief financial officer Michael Gleeson told Morning Wire earlier this year. “We’re focusing on availability. We’re focusing on customer perception, and we’re focusing on our trade plan.”
An Asda spokesperson said: “This approach brings us in line with our competitors and the wider market, allowing us to build high-performing teams with a collaborative culture and respond to what our business needs the most.
“The change is effective from January 2025 to allow time for all colleagues to make any necessary arrangements.”