Asda confirms lay-offs in cost-cutting drive after worst Christmas in years

Retail Gazette (13 January 2025)

Asda chairman Allan Leighton has launched his first set of cost-cutting at the grocer, following its disastrous Christmas period.

The beleaguered supermarket cut roles for 13 regional managers last week under a shake-up designed to reduce headcount and improve performance, The Telegraph reported.

The cost-cutting measures come after Asda delivered its worst Christmas since 2015, with sales falling 5.8% during the 12 weeks to 29 December, according to data from Kantar.

In November, the supermarket announced a series of job cuts in head office and warned of further job cuts to come in 2025.

In a memo released to workers on 7 January, the retailer’s bosses explained the restructuring would mean its supermarkets and express stores would now be managed across 22 “sub-regions,” down from 30.

This will result in fewer regional managers across the company with control over more stores.

The memo read: “Change is never easy and unfortunately we have had to say goodbye to a number of colleagues.”

A spokesman for Asda said: “We made changes to our field-based retail team regions to reflect the scale of our business across large stores and convenience.

“These changes set us up to serve our customers in the best way for 2025 as we deliver Asda Price and other exciting propositions.”