Asda has revealed plans to reduce its workforce and has mandated a three-day office attendance policy as part of its latest strategy for revitalisation.
On 5 November, an internal memo disclosed that the retailer is altering its office attendance rules at George House in Leicester and at Asda House and Britannia House in Leeds, aiming to bolster Asda’s market position by 2025, The Telegraph reports, as reported by City AM.
Chair Lord Rose stated that the company would be trimming head office positions to “remove duplication and simplify structures”, though the exact number of job cuts was not specified.
This development follows shortly after Mohsin Issa stepped down from leading Asda, with Lord Rose stepping in as interim chair while the search for a permanent chief executive, expected to take three years, is underway.
Lord Rose commented: “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 supermarket chain is currently executing a turnaround strategy.
Despite these efforts, Asda’s grip on the grocery sector has been slipping, Kantar data shows, with a 5.6 per cent decline in sales year on year. Its market share dropped to 12.6 per cent in the 12 weeks leading up to 1 September, a decrease from 13.8 per cent.
“We also know that there are some areas where we can and need to improve,” stated chief financial officer Michael Gleeson in a conversation with City AM 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 commented: “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.”
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