Asda, a leading supermarket chain, is under scrutiny following reports of further job cuts. The company plans more redundancies affecting staff involved in its Future programme aimed at IT infrastructure overhaul. Recent actions include the dismissal of 500 employees without a mandatory consultation period. Lord Stuart Rose defended the approach citing enhanced compensation packages. The GMB Union has criticised the lack of consultation.
Asda, one of the UK’s largest supermarket chains, is reportedly planning another round of job cuts. These redundancies target a significant number of employees working on the retailer’s Future programme, which seeks to modernise its IT systems following separation from its former parent company, Walmart. The comprehensive overhaul of Asda’s digital infrastructure is expected to conclude by early 2025.
The speculated job cuts follow a recent controversial decision by Asda to terminate 500 positions without engaging in the standard 45-day consultation period required by employment law. This move has drawn sharp criticism from the GMB Union, which advocates for workers’ rights, highlighting the company’s disregard for procedural norms designed to protect employees.
Asda’s chairman, Lord Stuart Rose, responded to the backlash by asserting that the measure did not violate employment regulations. He claimed the company provided more generous compensation than would have been mandated after a formal consultation period. This justification, however, has done little to quell the concerns raised by critics of the supermarket’s employment practices.
Drapers has reached out to Asda for further comments on the reported redundancies, though the supermarket giant has yet to provide additional insight or clarification regarding its plans. As details unfold, the situation continues to develop, leaving affected employees and observers vigilant about potential impacts on the workforce.
The unfolding scenario at Asda raises pressing questions about employer obligations and employee rights.
