Asda to restructure in-store bakeries putting 1,200 jobs at risk

The supermarket has entered into consultation with affected staff as it looks to scrap its current method of in-store “scratch baking” due to a fall in demand for traditional bread. The retailer plans to switch to using a centralised bakery to deliver pre-baked products to stores each day.

“The proposal follows a notable shift in customer buying behaviours in recent years, with demand for speciality breads, wraps, bagels and pancakes outstripping traditional loaves,” said the retailer. 

“The switch to a new model means Asda would be able to broaden the range of bakery products offered, while baking fresh products several times a day, compared to just once a day at present.”

Asda said as many as 1,200 staff across its estate would be affected but it added that “the priority will be to move as many colleagues as possible into alternative roles within Asda with redundancy the last option.”

Chief merchandising officer Derek Lawlor said: “The current in-store bakery model has restricted our ability to respond to changing customer demands and offer them the speciality products and freshly baked goods they want to buy throughout the day. 

“The changes we are proposing will deliver a much better and more consistent bakery offering for customers across all our stores. We know these proposed changes will be unsettling for colleagues and our priority is to support them during this process.”

A spokesman for Asda said new owners the Issa brothers and TDR Capital “had no involvement in these proposed changes”. 

This is potentially the second round of layoffs at Asda this year after the retailer said in February it was putting 5,000 roles into consultation as it unveiled new transformation plans aimed at capitalising further on the shift to online grocery shopping.

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