News
Asda laying off 475 head office employees
According to Asda, the jobs represent less than 10% of its workforce across the two offices.
Fixed-term contractors that have been working on the retailer’s IT transformation project have also been told they will be leaving over the course of the next few months once the project is concluded.
Meanwhile, the more than 4,500 staff not included in the layoffs have been told to attend the office three days a week as part of a hybrid working model.
Explaining the move, an Asda spokesperson said: “This approach brings us in line with our competitors and the wider market, allowing us to build high-performing teams with a collaborative culture and respond to what our business needs the most. The change is effective from January 2025 to allow time for all colleagues to make any necessary arrangements.”
Change at the top
The news comes just a day after it was confirmed that TDR Capital had completed the acquisition of Zuber Issa’s 22.5% stake in the retailer, making TDR the majority owner with a 67.5% shareholding.
With Zuber Issa no longer a shareholder, he will no longer sit on the Asda board, while his brother Mohsin Issa has stepped away from his day-to-day role despite still owning a 22.5% stake.
Instead, chair Lord Rose has taken on more responsibilities, including supporting with the search for a new CEO.
Sister publication The Grocer has gained access to a note sent around to Asda staff, sent by Rose and TDR’s Rob Hattrell, who is supporting with operations.
“We have to recognise that the market is challenging and the competition isn’t standing still,” the note said.
“We have rightly taken the decision to invest in our stores, focus on improved availability and enhanced customer experience, alongside a stronger trade plan. We must now deliver a more flexible and fast-moving home office structure to support those priorities.
“As part of this process we are redefining roles and accountabilities to remove duplication and simplify structures.”
Food Manufacture has reached out to TDR for comment.
