Asda has cut 475 jobs in its head office and ordered staff to return to work as part of a restructured business.
The supermarket will cut jobs in Leeds and Leicestershire in order to “meet their long-term goals” after reporting that total revenues, excluding fuel, dropped by 2.2% from April to June of 2024.
It stressed that the move would affect less than 10 percent of its regional workforce and said that fixed-term contractors working on the IT transformation project, will also depart over the next few month as the project ends.
In a memo sent to staff earlier this week the company chairman, Lord Rose, stated that hybrid working will be reduced. Attendance at work must be at least 3 days per week starting in 2019.
The note told employees: “We must recognise that the competition and market are not standing still.”
Asda’s spokesperson commented on the change: “This brings us into line with our competitors, and the wider market. It allows us to build high performing teams with a collaboration culture, and respond to the needs of our business.” The change will be effective in January 2025, to give colleagues time to make necessary arrangements.
GMB said Asda staff “bear the brunt” in its decision to reduce costs because of its declining market share.
Nadine Haoughton, GMB’s national officer, stated: “Handing hundreds committed workers a Brown envelope and then showing them the exit is a morally revolting way to treat your employees.”
She emphasized that TDR Capital owned 67.5% the supermarket and was trying to cut spending.
Houghton said: “Asda employees are once again bearing the brunt of TDR Capital’s financial scheming.”
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