2,500 jobs threatened ahead of £14bn tie-up
UP TO 2,500 Asda jobs are at risk in a fresh round of cost-cutting at the UK’s third biggest supermarket ahead of its proposed merger with Sainsbury’s.
The US-owned grocer, which employs 150,000 in 584 stores, is to consulte staff in areas such as bakeries, petrol stations, back office and George clothing desks.
Asda, led by chief executive Roger Burnley, denied the move was related to its £14billion tie-up with Sainsbury’s, which is being probed by the competition authorities.
It 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.
“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 changes we would work with our colleagues to look at the potential impact on them.”
Asda held consultations with over 3,200 workers last year in a review of staffing levels at dozens of stores amid changing shopping habits. The number of eventual job losses then is understood to have been far lower. Asda underperformed its big four rivals for years, but a turnaround has led to five straight quarters of rising sales. A major investment in reducing prices and improving service has hit profits, down 13 per cent last year to £734.4million.
GMB union’s Gary Carter 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.
“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 – slashing our members jobs would hurt the service ASDA customers receive.”