Asda unveils 280 job cuts across its stores following consultation

Asda, which launched a consultation into 5,000 store-based jobs and around 1,000 head office positions in January, will close staff canteens in all of its stores and call time on some of its shopfloor services, including photo processing and its create your own pizza counters.

The supermarket giant will instead be offering free tea and coffee to staff in all stores and will also give employees an additional 10% discount on takeaway food such as sandwiches, in addition to the 10% discount they already receive.

The changes, which form part of Asda’s 18-month Project Renewal to prioritise “investment to better address the fast-changing needs of its customers,” have seen the majority of the 5,000 store staff redeployed, while 280 have taken redundancy, the grocer said.

It follows a move earlier this year that saw 250 jobs lost at Asda’s head office in Leeds. 

A spokeswoman said: “We are nearing the end of a 45-day consultation on proposals which we believe will enable us to react more quickly by becoming a leaner and more agile business.

“Our focus throughout this process has been on making sure that our stores and services are fit for the future and our colleagues have been an integral part of the decision making process. Of the 5000 colleagues who entered into consultation, 280 have now taken the decision to leave the business.

“While we are always saddened to see colleagues move on, we believe this dramatically reduced figure demonstrates Asda’s commitment to conducting a thorough and meaningful consultation process.

“We are confident these changes will be effective in making our stores easier to shop in and better positioned to delivering the low prices, quality and good value customers tell us they want.”

The grocer is bidding to cut costs in the face of fierce competition from discount duo Aldi and Lidl.

Asda’s big four rivals, Tesco, Sainsbury’s and Morrisons, have also trimmed their workforces in recent years as they face into a rapidly changing grocery market that has been gripped by food price deflation, changing consumer habits and the rise of online shopping.

Asda cut 1,360 jobs under a radical shake-up of its management structure in July 2014, but admitted earlier this year that it had to “further change the way we do business” in order to adapt to the changing landscape.