UK: Asda to cut around 1,360 jobs in shake-up
Asda said that although it is creating 5,670 new roles, the majority will be on a lower pay grade
UK supermarket retailer Asda has said it will go ahead with proposals to change the management structures across its store network, cutting around 1,360 jobs.
The Wal-Mart-owned company outlined plans to realign retail operations and ensure stores are "Fit for the Future" in May, including plans to create new roles in stores and put more staff on the shop floor. Under the proposals, Asda had initially forecast that up to 2,600 people would lose their jobs.
Following a 45-day consultation with staff, Asda said that although it is creating 5,670 new roles, the majority will be on a lower pay grade. But while this is an increase in the number of roles overall from the old structure, the retailer said there will be an estimated 1,360 potential redundancies.
"As much as it is my job, and privilege, to be CEO of this business and to do what is right for Asda as a whole, this is one of the most difficult decisions I've had to make," said Asda chief executive, Andy Clarke. "Whilst I genuinely believe that it is the right decision for the future of Asda, knowing that it will result in valued colleagues leaving us is not easy.
"Every supermarket must adapt to the intense changes in UK retailing or they will get left behind. We spotted this nearly two years ago, responding with a new strategy and taking time to thoroughly examine our structures, test scenarios, talk to our colleagues and adjust our proposals accordingly. This thorough process has helped us to reach this difficult decision today."
Over the coming weeks, managers affected by the changes will either begin training for their new jobs or take a redundancy package.
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