UK supermarket giant Asda has announced it will cut 475 head office roles and reduce hybrid working as part of a major restructuring plan. The cuts, impacting less than 10% of Asda’s head office staff, are intended to “simplify structures” and better position the business in a difficult retail market, according to the company.
In a statement to staff on Tuesday, Asda chairman Lord Rose confirmed that head office employees would be required to work in-office at least three days per week starting in January. The shift is intended to promote greater operational efficiency and adaptability to the company’s long-term objectives.
The company reported a 2.2% decrease in total revenue, excluding fuel, to £5.3 billion between April and June 2024. A spokesperson noted that, in addition to the permanent staff cuts, fixed-term contractors working on Asda’s IT transformation project would exit over the coming months as the project concludes.
Lord Rose added that the restructuring process includes redefining roles to reduce redundancies and simplify reporting structures. “These changes will help us better achieve our long-term ambitions,” he said.
Ownership and Leadership Changes
In 2020, billionaire brothers Zuber and Mohsin Issa acquired Asda from Walmart in a £6.8 billion deal supported by equity firm TDR Capital. Recently, TDR Capital increased its stake to 67.5% after acquiring shares from Zuber Issa, who subsequently stepped down from his non-executive role on Asda’s board.
Mohsin Issa retains a 22.5% stake in the company, while Walmart still holds a 10% share. Asda’s restructuring and ownership changes reflect ongoing adjustments as it aims to navigate and thrive in a competitive UK retail landscape.
