A major supermarket is preparing to cut up to 1,000 jobs as it increases the use of robots across its warehouse operations.
The robots are designed to maximise storage space and speed up order fulfilment by automatically retrieving products
Asda is pushing ahead with a major restructuring that will see its George online clothing business moved from three distribution centres into a single hub in Derby.
The new facility, which will be operated by logistics firm DHL, will be equipped with “Redline” robots developed by Norwegian company AutoStore.
The technology is designed to maximise storage space and speed up order fulfilment by automatically retrieving products.
As part of the shake-up, around 1,250 employees at sites in Northamptonshire, Staffordshire and Tyne and Wear will transfer to DHL under TUPE regulations.
However, during a consultation meeting with the GMB union two weeks ago, DHL disclosed that the Derby warehouse would require just 250 workers. As a result, up to 1,000 roles could ultimately be lost.
Asda is preparing to cut as many as 1,000 positions as part of a significant restructuring of its operations
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The proposals have been criticised by the GMB union, with national officer Rachelle Wilkins saying: “A thousand people losing their jobs to be replaced by robots sounds like something from a dystopian sci-fi movie, but the warehouse industry is becoming increasingly automated and it’s impossible to stand in the way of progress.”
She added: “[Our] members are now very worried this is the thin end of the wedge. What if Asda does the same thing with its online food shopping network? Thousands of jobs could be lost.”
An Asda spokesperson stated: “As we announced in January, we are partnering with DHL to ensure we can continue to serve the growth in our George online business effectively.
The new warehouse, operated by logistics firm DHL, will be equipped with “Redline” robots developed by Norwegian company AutoStore
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“Asda will work closely with DHL to support colleagues through this process including considering alternative employment opportunities across both businesses.”
The move reflects a broader trend across the retail sector, with companies increasingly turning to automation to counter rising employment costs, including higher National Insurance contributions and the National Living Wage introduced last April.
According to the UK Warehousing Association, approximately 760,000 people work in warehousing across Britain.
A Savills survey of 382 retailers, manufacturers and logistics companies found that over half intended to invest in artificial intelligence and warehouse robotics within the next three years
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A Savills survey of 382 retailers, manufacturers and logistics companies, published in February, found that over half intended to invest in artificial intelligence and warehouse robotics within the next three years.
While one in five firms anticipated needing fewer staff as a result, a third believed automation would actually increase their workforce requirements.
Asda has been working to boost profitability after losing market share to discount rivals Aldi and Lidl.