Asda has confirmed it will be slashing jobs and making changes to its hybrid working model in a bid to reverse its decline.

Asda upgrade program (4)

Source: Asda

Asda would be making head office roles redundant in a bid to ‘remove duplication and simplify structures’

In an internal email sent to staff on Tuesday, Asda said more than 5,000 head office workers will need to come into the office at least three days a week starting from January 2025.

In the note to workers seen by The Telegraph, chair Lord Stuart Rose said Asda was making office attendance compulsory at the Asda and Britannia House sites in Leeds, as well as at George House in Leicester, in a bid to strengthen the company’s position next year.

Rose also said Asda would be making head office roles redundant in a bid to “remove duplication and simplify structures” at the business.

He said: “Change is never easy and is unsettling, but the executive team believes it is necessary to enter 2025 in a stronger position, fully focused on serving our customers, delivering our ambitions and driving long-term growth.”

In a statement confirming the changes, an Asda spokesperson said the moves would bring Asda’s hybrid working programme in line with its competitors such as Tesco, Aldi and Morrisons.

“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,” it said.

The announcement comes weeks after owner Mohsin Issa stepped down from day-to-day running of the business, with former M&S boss Rose taking the helm while the retailer still searches for a full-time replacement.

Since the Issa brothers bought the grocer in February 2021, Asda’s market share has slumped by two percentage points as the retailer has lost ground both to full-price supermarket competitors such as Tesco and Sainsbury’s, as well as to discount players such as Aldi and Lidl.

Asda is due to update the market on its latest financial performance on Friday.