Asda has announced plans to eliminate 475 head office roles and has instructed staff to return to the office for a minimum of three days per week as part of an extensive restructuring effort.
The move by the UK’s third-largest supermarket chain is aimed at reversing a recent downturn in sales figures. The shake-up follows another change at the helm of the company, now owned by private equity.
In a communication to employees, Asda confirmed that the job cuts would affect its head offices in Leeds, West Yorkshire, and Lutterworth, Leicestershire, amounting to just under 10% of the company’s head office staff. Additionally, fixed-term contractors involved in Asda’s IT transformation project are set to depart in the upcoming months upon the project’s completion.
The message from chairman Lord Stuart Rose and board director Rob Hattrell stated: “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.”
Lord Rose, the former Marks & Spencer chief, is steering the business with Rob Hattrell, previously a senior vice president at eBay, following Mohsin Issa’s decision to step down from Asda’s day-to-day management last September. They also informed the staff at the company’s three head office sites in Leeds and Leicestershire about the reduction in hybrid working arrangements, citing the need to enhance collaboration and communication among teams.
From January next year, head office employees will be required to be in one of the main office locations for at least three days a week. The retailer announced plans to revamp its Asda House office in Leeds with enhanced catering services, an onsite Asda Express, and additional meeting spaces as part of this strategy.
This move comes prior to Asda’s upcoming quarterly results update on Friday. In August, the company reported a 5.3% like-for-like drop in sales during the second quarter of the year as customers shifted to its biggest competitors.
Original artice – https://business-live.co.uk/all-about/yorkshire-humber
