Asda announces ‘major restructuring’ putting up to 3000 jobs at risk

Asda has launched consultations over a major restructuring plan which could put around 3,000 back office store workers at risk.

The “programme of change” proposals are in response to the changing demands of the retail sector, the supermarket giant has said.

Asda says it has seen a “structural shift in customer behaviour towards online grocery during the pandemic” with delivery volumes doubling to reach levels that were expected to take nine years to achieve.

Proposals to simplify ways of working across ‘back office’ store functions with cash office, administration, people and training tasks proposed to be completed by “one multi-skilled back office” staff member. The move potentially impacts around 3,000 staff.

The company said around 4,500 jobs will be created in its online operations this year and will look to hire staff affected by the restructuring.

Asda will now enter formal consultations with around 5,000 colleagues potentially impacted by the proposals.

“If the proposals are enacted, the priority will be to move as many colleagues as possible into alternative roles within Asda, with redundancy the last option.” Asda has said.

Roger Burnley, Asda CEO and President, said: “The pandemic has accelerated change across the retail sector especially the shift towards grocery home shopping and our priority is to serve customers in the way they want to shop with us.”

“The last 12 months have shown us that businesses have to be prepared to adapt quickly to change and I am incredibly proud of the way we demonstrated our agility and resilience through the pandemic.”

“As customer habits continue to change we have to evolve our business to meet these demands and ensure our business is strong and sustainable for the long term.”

“We know that these proposed changes will be unsettling for colleagues and our priority is to support them during this consultation process.”

“Our plans to transform the business will result in more roles being created than those we propose to remove and our absolute aim is to ensure as many colleagues as possible stay with us, as well as creating the opportunity to welcome new people to our business.”