Supermarket Asda to cut jobs at head office
Asda is to axe hundreds of jobs at its head office as part of a major cost-cutting drive at the Walmart-owned supermarket.
The grocery giant informed affected staff in Leeds on Wednesday afternoon about the cull, which is understood to amount to around one 10th of Asda’s 2,500 head office roles.
Asda is in the midst of a turnaround plan under new chief executive Sean Clarke, who is attempting to arrest falling sales as the supermarket scraps it out with rivals in a brutal price war that has eroded profits.
An official statement confirming the number of affected employees is expected to be released later on Wednesday.
It comes after reports surfaced last month that thousands of Asda workers across 18 underperforming stores are facing redundancy or changes to their working hours.
Staffing arrangements in a further 59 stores are also being looked at as Mr Clarke brings in a raft of changes.
In August, there were signs that his strategy was beginning to bear fruit, with Asda posting its first quarterly sales growth in three years.
The supermarket reported a 1.8% rise in like-for-like sales in the second quarter, bringing an end to 11 consecutive quarters of deterioration.
Figures were boosted by a combination of price cuts and rising inflation, and came a year after Asda reported its worst quarterly performance on record when sales tumbled by 7.5%.
Mr Clarke, who took up the reins last summer after being parachuted in to replace previous boss Andy Clarke, has slashed the prices of everyday items as part of attempts to woo back shoppers.
The move, part of a new value campaign dubbed That’s Better, has also seen Asda improve the quality of its own-brand ranges.
Mr Clarke said last month that more shoppers were choosing Asda, but warned that the supermarket must up its game.