In a bid to counter declining sales, Asda has mandated its head office employees to return to the office at least three days a week while also announcing impending job cuts.
Asda has announced a significant shift in its working policy by requiring its more than 5,000 head office staff to return to the office for a minimum of three days a week starting January 2025. This decision, communicated via an internal email, comes from Asda chairman and interim chief executive, Lord Rose, and affects its offices in Leeds and Leicester.
The move is part of a broader plan to arrest a recent slump in sales, which has prompted the supermarket giant to also streamline its workforce. Although the exact number of redundancies remains unspecified, Lord Rose described the job cuts as necessary to eliminate overlap and simplify organisational structures. He stated, “Change is never easy and is unsettling, but the executive team believe it is necessary to enter 2025 in a stronger position, fully focused on serving our customers, delivering our ambitions and driving long-term growth.”
This policy brings Asda in line with its competitors such as Tesco, Aldi, and Morrisons, all of which have also adjusted their workplace policies to a hybrid model. An Asda spokesperson explained that the decision was made to foster high-performing teams and a culture of collaboration that meets the current needs of the business. The adjustment period until January gives staff time to manage any required arrangements linked to the new policy.
This strategic decision is occurring amid an unstable period for Asda, as it continues efforts to implement a turnaround strategy aimed at revitalising its performance. Following the resignation of former CEO Mohsin Issa, Lord Rose, alongside TDR Capital partner co-founder, has taken on additional roles in managing the company’s operations while the search for a permanent chief executive continues.
Asda’s decision to mandate a return to office work and reduce its workforce signifies a calculated response to current market challenges. This restructuring aims to streamline operations and align Asda with industry standards, positioning the company for potential growth and stability in the coming year.
