Asda has unveiled a strategy aimed at reversing its recent decline in sales, mandating over 5,000 head office staff to return to their desks in Leeds and Leicester for a minimum of three days per week. This directive is part of broader measures to streamline operations and enhance performance.
The announcement was made through an internal communication, credited to Asda’s chairman and interim chief executive, Lord Rose. He explained the move as essential for strengthening the company’s focus on customer service, long-term growth, and achieving corporate objectives. Lord Rose acknowledged the discomfort change might bring, yet emphasised its necessity in positioning the company for a more robust 2025.
In addition to the new attendance requirement commencing in January 2025, Asda will implement head office job cuts. However, the retailer has not specified the number of redundancies expected. This restructuring aims to eliminate role overlap and simplify organisational frameworks.
According to a spokesperson, the revised work-from-office policy is aligned with industry competitors, citing examples like Tesco, Aldi, and Morrisons. The spokesperson highlighted the new policy’s potential to foster high-performance teams and a collaborative culture, catering to the company’s evolving needs.
This strategic decision emerges amid a challenging year for Asda as it grapples with performance issues. The organisation is in the process of executing a turnaround plan to stabilise its financial position. Following the resignation of Mohsin Issa as chief executive last month, Lord Rose has temporarily assumed executive duties, while the search for a permanent successor continues.
Asda’s initiative to bring employees back to the office and its concurrent job cuts highlight the retailer’s proactive approach to navigating ongoing economic challenges and organisational restructures. These actions demonstrate a commitment to regaining market competitiveness and ensuring future sustainability.
