Asda could axe 2,500 jobs next year, reports say

Walmart-owned supermarket said it was looking for ways to improve efficiency in the current competitive retail market

Asda is set to begin consulting with staff over potential job cuts, and could slash 2,500 roles next year.

Job cuts would probably affect Asda’s petrol, bakery, back office and “hosting” operations, as well as roles in its clothing arm, George, according to Press Association.

In a statement, the company said: “In a competitive retail market, where customers rightly expect great value and ease of service, we must always look at how we can work more quickly and efficiently for them and, inevitably, that means we need to consider changing the roles we need our colleagues to do, or the hours needed in particular parts of our stores.

“We believe the proposed changes we are consulting on would allow us to do a better job for our customers.

“We also recognise that discussions about potential change aren’t easy. If the decision is taken to implement the proposed changes, we would work with our colleagues to look at the potential impact of these proposals on them.”

The GMB union said Asda’s decision to announce potential job cuts just two months before Christmas was a bad one.

Gary Carter, the union’s national officer, said: “These proposed redundancies are a hammer blow to Asda workers. The timing of this announcement, in the run up to Christmas, is doubly appalling.”

He added: “Asda is performing well and is highly profitable because of the hard work of our members, who are the backbone of the company.

“These cuts make no sense whatsoever – slashing our members’ jobs would hurt the service ASDA customers receive. GMB will fight tooth and nail for every single job.

“With all the speculation surrounding the proposed Sainsbury’s merger and potential sell offs of stores – this news will not put anyone’s mind at rest.”

Asda and Sainsbury’s announced plans for a £10bn tie-up in April and the deal is being scrutinised by the competition watchdog.

Last month, Asda announced it was scrapping its price guarantee scheme, which gave customers money off if the cost of their shop was not 10 per cent cheaper than if bought at a rival chain.

The company said at the time: “It’s a decision we’ve not taken lightly because we love it dearly, but in reality, we know our customers don’t love it enough for us to keep it.

“Instead they want us to focus our investment on lowering our prices, and they’ll let us know if we’re falling out of step with the competition.”

In July, the supermarket said it was entering into consultation with colleagues at its Enfield Home Shopping Centre in London, putting 261 jobs at risk.