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Asda restructuring results in over 1,000 redundancies

Asda restructuring results in over 1,000 redundancies

Morale remains high at Asda despite the company completing its restructuring process with the loss of over 1,000 jobs.

The supermarket maintained that staff are positive about the future even after Asda announced a raft of redundancies as it faces increased pressure from discounters such as Aldi and Lidl. The Grocer reported that the last of the staff to leave the business due to the redundancies will do so over the coming weekend (October 11th and 12th).

In total Asda made 1,360 employees redundant, the majority being duty manager roles. However, it created 5,670 new positions including section manager and section leaders resulting in a net gain of 1,570 roles compared to its previous structure. While new roles have been created it highlights the pressure Asda, along with the more traditional names such as Tesco, Morrisons and Sainsbury's, have been under

Speaking to the news provider, an Asda spokeswoman said: "This is the biggest piece of change that Asda has been through in recent years. So we are encouraged by the fact that our internal, independent research shows an increase in the number of colleague who feel proud to work for Asda."

Asda is not the only supermarket to make redundancies as Morrisons announced in June that it would be cutting 2,600 management jobs. Like Asda, the company's decision is part of a major restructuring process which will affect 15,000 jobs across the UK. It is designed to improve Morrisons' focus on customer and provide "simpler, smarter ways of working", according to chief executive Dalton Philips.

The rise of Aldi and Lidl has forced the traditional supermarkets to rethink their approach and has a sparked a major pricing war between all supermarkets as they try to compete with the low prices offered by the two discounters.

 

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