Supermarket giant Asda has placed more than 150 roles at risk of redundancy following a disappointing festive trading period, during which its Christmas sales fell significantly.
Festive Performance Triggers Restructure
The retailer, which operates approximately 1,200 stores across the UK, saw its festive sales decline by 4.2% this year. This poor performance contributed to a drop in its market share to 11.4% in the critical 12 weeks leading up to December 28, marking its lowest level in many years.
In response, Asda is now proposing a significant streamlining of its operations. The plans include cuts to more than 80 management roles. Dozens of warehouse and distribution workers are also expected to be affected by the restructuring, according to reports from the GMB union.
Details of the Proposed Changes
The redundancy consultations are currently underway, though the final total number of job losses remains unconfirmed. The GMB trade union has stated it is supporting its members through collective consultations and individual meetings across Asda's distribution centres and depots.
In a message to distribution workers, the union acknowledged the uncertainty, saying: "For some of you, finding out that Asda are proposing to make big changes that may put your job at risk will leave you with many more questions than answers. Your union will be by your side every step of the way."
The proposed changes involve several key areas:
- A restructuring of transport operations through the creation of regional hubs.
- Changes to parcel-handling, with plans to enlist delivery firm Evri to manage demand. Asda currently processes 28 million parcels a year and has stated it cannot keep up.
- A consolidation of store oversight, reducing 30 sub-regions down to 22, meaning fewer regional managers will be required.
An Asda spokesperson told The Grocer that the plans aim to streamline operations by "reducing duplicated tasks, improving regional flexibility, creating more consistent ways of working, and lowering our reliance on agency and haulier support."
Context and Industry Contrast
This round of proposed job cuts comes less than a year after Asda faced criticism for laying off almost 500 staff members in November 2025 without a formal consultation period.
The supermarket's festive struggle stands in contrast to some of its main rivals. While Asda's sales dropped, competitors Tesco and Sainsbury's both reported increased sales over the same Christmas season, highlighting the competitive pressure in the UK grocery market.
Internal memos seen by the Telegraph indicate Asda bosses have communicated the difficult changes to staff, noting that "change is never easy and unfortunately we have had to say goodbye to a number of colleagues." The company continues to consult on the proposals which put over 150 jobs in jeopardy.
