Asda has placed more than 150 roles at risk of redundancy after reporting a sharp fall in sales over the Christmas trading period.
The supermarket posted a 4.2 per cent decline in festive sales, with market share dropping to 11.4 per cent in the 12 weeks to December 28, its lowest level in recent years.
Asda was the only major UK supermarket to record falling sales over Christmas, while rivals Tesco and Sainsbury’s both increased customer numbers.
The retailer is now proposing cuts to more than 80 management roles, with dozens of warehouse positions also expected to be affected.
Redundancy consultations are under way across several of Asda’s distribution centres to determine the final number of job losses.
Trade union GMB said it is supporting members throughout the process, representing staff in collective consultations and individual meetings.
In a message to distribution workers, the union said: “For some of you, finding out that Asda are proposing to make big changes that may put your job at risk will leave you with many more questions than answers.”
It added: “Your union will be by your side every step of the way and we will be doing all we can to protect jobs.”
Asda confirmed that two separate consultations are taking place across its 21 depots nationwide.
One focuses on restructuring transport operations, with plans to create eight regional hubs overseen by coordinating offices.
The troubled supermarket has struggled to recover its market share
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An Asda spokesman said the approach would streamline operations, “reducing duplicated tasks, improving regional flexibility, creating more consistent ways of working, and lowering our reliance on agency and haulier support.”
The second consultation concerns Asda’s parcel‑handling operation.
The retailer processes around 28 million parcels a year but says its current infrastructure cannot cope with that volume.
It plans to transfer parcel services to delivery firm Evri, enabling all 1,200 Asda stores to offer next‑day parcel collection and returns — a service currently unavailable in more than half of its estate.
Workers in Yorkshire face particular uncertainty under the proposals.
Asda’s performance has deteriorated since its 2021 acquisition by private equity firm TDR Capital and brothers Mohsin and Zuber Issa.
Asda has lost ground to competitors
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ASDAAt the time, the retailer held a 14.8 per cent market share, but it has since lost ground to competitors.
Chairman Allan Leighton returned to the business after previously leading a turnaround in the 1990s, yet the company has not reversed its recent decline.
The latest proposals follow several rounds of job cuts over the past 18 months.
In July, Asda reduced in‑store management roles across its estate, and hundreds of IT staff were made redundant after a failed technology upgrade.
Asda sit third in market share
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Ratings agency Fitch downgraded Asda further into junk status last year, raising concerns about borrowing costs.
A €1.3billion term loan from parent company Bellis Finco has also fallen sharply in value, trading as low as 88 cents on the euro.
Asda said the consultations form part of efforts to adapt its operations and improve efficiency while responding to changing customer behaviour.
GMB said it will continue engaging with the company throughout the process and urged affected employees to seek union support.