In a decisive move, Asda is enforcing changes to reverse its sliding market position.
- Over 5,000 employees in Leeds and Leicester will be impacted by these changes starting January 2025.
- Office personnel are required to return three days a week to boost collaboration and response.
- Head office roles will be reduced, aiming to remove redundancies and streamline operations.
- Despite leadership changes, a permanent CEO hunt is ongoing amid challenges.
In a bold attempt to combat its declining market share, Asda has announced significant operational changes. The alterations, set to affect over 5,000 employees across Leeds and Leicester from January 2025, were detailed in an internal email from interim CEO Lord Rose. Asda aims to strengthen its market position after its share dropped from 14.6% to 12.6% following its £6.8 billion acquisition by the Issa brothers and TDR Capital in 2021. The company has been losing ground to competitors like Tesco and Sainsbury’s.
The supermarket chain is mandating that its head office staff return to the office three days a week. This move aligns Asda with its competitors’ working policies and is intended to encourage a more collaborative and responsive work environment. The decision reflects a strategic push towards fostering direct communication and teamwork among employees, as businesses increasingly aim to balance remote work with in-person interactions.
Additionally, Asda plans to cut certain head office roles as part of its effort to “remove duplication and simplify structures.” While the exact number of jobs affected was not disclosed, this step is part of a broader effort to streamline operations in a bid to improve efficiency and reduce costs.
Interim CEO Lord Rose, who assumed leadership following Mohsin Issa’s step down, is spearheading these changes with help from TDR partner Rob Hattrell. The firm is actively seeking a permanent CEO, a task being managed by the recruitment company Spencer Stuart. However, challenges remain in attracting suitable candidates, partly due to Asda’s ongoing performance issues.
Asda’s recent strategies reflect its determination to revitalise its market standing amidst competitive pressures.
