Asda, a prominent supermarket chain, is poised for additional job cuts, intensifying recent redundancies.
- Earlier cuts involved 500 roles, executed without the obligatory 45-day consultation period, sparking criticism.
- The upcoming cuts target staff linked to Asda’s IT overhaul, part of its ‘Future’ programme.
- The ‘Future’ programme seeks to replace obsolete systems from Walmart with a modern digital infrastructure.
- Asda’s chairman insists the approach complied with employment laws, offering generous compensation.
Asda, one of the UK’s leading supermarket chains, is reportedly set to proceed with further job reductions. This follows a recent decision to cut 500 positions without following the standard consultation process, as originally reported by The Telegraph earlier this month.
The supermarket giant’s decision to bypass the obligatory 45-day consultation period has attracted considerable criticism, particularly from the GMB Union. This move was perceived as controversial and has placed Asda under scrutiny amidst calls for accountability and adherence to employment regulations.
The forthcoming phase of redundancies is expected to impact a substantial number of employees currently involved in the company’s ‘Future’ programme. This initiative aims to replace the legacy systems inherited from Wal-Mart, Asda’s former parent company, with a new cloud-first digital infrastructure. The completion of this significant technological transition is anticipated by early 2025.
Despite the controversy surrounding the consultation process, Asda’s chairman, Lord Stuart Rose, defended the company’s actions. He emphasised that the compensatory offers made to departing employees were more favourable than what would typically be received following a traditional 45-day consultation period. This statement is intended to reassure stakeholders of Asda’s commitment to fair treatment of its workforce during this transitional phase.
Drapers, a fashion industry news outlet, has reached out to Asda for a comment on the situation. However, at the time of this report, no official response has been provided. The lack of communication highlights the current uncertainty surrounding the supermarket’s strategic decisions and their impacts on employees.
As Asda progresses with its structural changes, further scrutiny of its employment practices is likely.
