Asda cost-cutting drive puts 2,800 jobs at risk

The grocer has told staff working in administrative, cash office and personnel roles that their jobs are at risk and began a consultation process last Thursday, according to The Guardian.

This latest raft of prospective job cuts comes shortly after Asda enforced a contentious employment contract last year, which raised hourly pay to £9 per hour but axed paid breaks and increased pay for some bank holidays, and was opposed by many staff.

As part of its latest cost-cutting drive, Asda is proposing halving the back-office workload across its 639-strong store estate. Although it is not clear how many jobs this will impact, trade union GMB has said the retailer is seeking “significant hours reductions” in the affected departments.

A statement from Asda said: “The way in which we operate our store-based back office has evolved over recent years to adapt to changing customer behaviour, such as an increase in card payments over cash.” 

“As a result, we are proposing some changes to increase efficiencies and simplify ways of working across administration, compliance and cash office. We have opened a collective consultation with those colleagues impacted and their representatives, and will have conversations about any potential change with our colleagues first.”

Earlier this month, Asda unveiled plans to replace its meat and fish counters with a food-for-now offer.

The Walmart-owned chain, which is seeking a potential IPO following its failed bid to merge with Sainsbury’s, said the move was designed to help its stores face into “changing customer behaviours, tastes and shopping habits”. No roles will be impacted by the move.