UK supermarket group Asda is to begin consultations with staff over changes that could result in up to 2,500 job cuts, with workers in the retailer’s George clothing department set to be affected.
A spokesperson for Asda, which earlier this year agreed to be taken over by rival Sainsbury’s, said the group needed to consider changing the roles it needs its colleagues to do, and working hours in particular parts of the store.
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Areas affected by the potential changes are understood to include petrol, bakery, back office, hosting, and George clothing, according to GMB Union.
“In a competitive retail market, where customers rightly expect great value and ease of service, we must always look at how we can work more quickly and efficiently for them – and inevitably, that means we need to consider changing the roles we need our colleagues to do or the hours needed in particular parts of our stores,” the spokesperson said.
“We believe the proposed changes we are consulting on would allow us to do a better job for our customers. We also recognise that discussions about potential change aren’t easy. If the decision is taken to implement the proposed changes we would work with our colleagues to look at the potential impact of these proposals on them.”
GMB Union says the news is a “hammer blow” to Asda workers, with the timing of the announcement in the run-up to Christmas, “doubly appalling”.
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By GlobalData“Asda is performing well and is highly profitable because of the hard work of our members, who are the backbone of the company,” says Gary Carter, GMB national officer. “These cuts make no sense whatsoever – slashing our members jobs would hurt the service Asda customers receive. GMB will fight tooth and nail for every single job.
“With all the speculation surrounding the proposed Sainsbury’s merger and potential sell-offs of stores – this news will not put anyone’s mind at rest.”
In April, Sainsbury’s and Asda parent Walmart agreed terms for a proposed combination of the UK’s second and third largest grocers to create one of the UK’s leading grocery, general merchandise and clothing retail groups, with combined revenues of GBP51bn (US$70.1bn) in 2017.
Children’s clothing is among the key areas to be considered by UK Government watchdog CMA in its in-depth investigation into the proposed merger.
