Asda launches two consultations that could lead to job cuts

Big four grocer Asda has confirmed it has launched two separate job consultations that could lead to job cuts, although it clarified it is not in a position at present to confirm how many colleagues will be impacted by the changes.

The first consultation relates to Asda’s 21 depots and each of these depots independent transport management teams. It is thought the changes would look to create a more centralised and scalable approach to transport management.

A spokesperson for Asda said: “We are proposing to introduce a new regional structure for our transport teams to simplify our distribution network and our deliveries to stores. This involves creating eight regional hubs with a regional transport office coordinating activity across each region.

“This approach would deliver several practical benefits, including reducing duplicated tasks, improving regional flexibility, creating more consistent ways of working, and lowering our reliance on agency and haulier support.”

The second consultation surrounds Asda proposing a change to how it manages the distribution and collection of parcels from its stores and a potential partnership with delivery service Evri.

The spokesperson added: “We currently process over 28m parcels a year through a network that was never designed for this level of demand. As a result, fewer than half of our stores can offer next-day parcel collection – a service that customers now expect as standard from all major retailers. By partnering with Evri, all 1,200 Asda locations will be able to offer next-day collection and returns, providing customers with a quicker and more convenient service.”

The news comes after Asda reported a tough festive period in which sales at the private equity-owned chain fell 6.5% in December, according to figures from Nielsen IQ, while all of its main rivals recorded growth.