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Asda to cut 475 jobs and reduce hybrid working | Asda to cut 475 jobs and reduce hybrid working |
(about 16 hours later) | |
Supermarket Asda has announced 475 roles will be cut in their head offices | Supermarket Asda has announced 475 roles will be cut in their head offices |
Asda has confirmed 475 roles at their head offices in Leeds and Leicestershire will be cut and hybrid working reduced as part of a business restructure. | Asda has confirmed 475 roles at their head offices in Leeds and Leicestershire will be cut and hybrid working reduced as part of a business restructure. |
The retailer said the move, which would affect less than 10% of its head office staff, would enable it to "simplify structures" amid a challenging market. | The retailer said the move, which would affect less than 10% of its head office staff, would enable it to "simplify structures" amid a challenging market. |
In a note to employees on Tuesday, the company's chairman Lord Rose said office attendance would also become compulsory for at least three days per week from January. | In a note to employees on Tuesday, the company's chairman Lord Rose said office attendance would also become compulsory for at least three days per week from January. |
It comes after the company reported a 2.2% decline in total revenues excluding fuel, to £5.3bn from April to June 2024. | It comes after the company reported a 2.2% decline in total revenues excluding fuel, to £5.3bn from April to June 2024. |
'Redefining roles' | |
A spokesperson for the firm said: "The changes which are being communicated today will result in 475 colleagues being made redundant at our head offices in Leeds and Leicestershire. | A spokesperson for the firm said: "The changes which are being communicated today will result in 475 colleagues being made redundant at our head offices in Leeds and Leicestershire. |
"In addition, fixed-term contractors who are working on our IT transformation project will also leave over the course of the next few months as this project finishes." | "In addition, fixed-term contractors who are working on our IT transformation project will also leave over the course of the next few months as this project finishes." |
From January 2025, employees would also be required to be present in an Asda office location for a minimum of three days per week. | From January 2025, employees would also be required to be present in an Asda office location for a minimum of three days per week. |
Lord Rose said the changes were needed to "ensure that the business was best placed to meet our long-term ambitions". | Lord Rose said the changes were needed to "ensure that the business was best placed to meet our long-term ambitions". |
"As part of this process, we are redefining roles and accountabilities to remove duplication and simplify structures," he said. | "As part of this process, we are redefining roles and accountabilities to remove duplication and simplify structures," he said. |
Asda was bought in 2020 from Walmart by billionaire brothers Zuber and Mohsin Issa in a £6.8bn deal with the backing of equity firm TDR Capital. | Asda was bought in 2020 from Walmart by billionaire brothers Zuber and Mohsin Issa in a £6.8bn deal with the backing of equity firm TDR Capital. |
'Morally repugnant' | |
Last week, Asda announced TDR Capital had acquired the shares of Zuber Issa, who subsequently stepped down from his non-executive role on Asda’s board. | Last week, Asda announced TDR Capital had acquired the shares of Zuber Issa, who subsequently stepped down from his non-executive role on Asda’s board. |
This brings the ownership of Asda by TDR Capital to 67.5%. | This brings the ownership of Asda by TDR Capital to 67.5%. |
Mohsin Issa, who stepped back, external from his executive leadership role in September, owns 22.5 %, while 10% is still held by Walmart. | Mohsin Issa, who stepped back, external from his executive leadership role in September, owns 22.5 %, while 10% is still held by Walmart. |
The GMB trade union said the planned job cuts were "further evidence this model of private equity ownership is bad for workers and bad for the UK economy". | |
GMB national officer Nadine Houghton said it was now Asda workers who were "bearing the brunt" to offset what it said was the company's declining market share. | |
“Handing hundreds of committed workers a brown envelope and showing them the door is a morally repugnant way to treat your workforce," she added. | |
“GMB has concerns Asda has chosen not to follow the current established legal process for mass redundancies. We have sought clarification from them on this point." | |
Listen to highlights from West Yorkshire on BBC Sounds, catch up with the latest episode of Look North or tell us a story you think we should be covering here, external. | Listen to highlights from West Yorkshire on BBC Sounds, catch up with the latest episode of Look North or tell us a story you think we should be covering here, external. |
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