Supermarket chain Asda has placed more than 150 jobs in jeopardy as it launches a significant operational shake-up in the wake of a disappointing Christmas trading period.
Proposed Cuts Target Management and Warehousing
The proposed restructuring, detailed in consultations that opened this week, could see more than 80 managerial positions and dozens of warehouse staff roles made redundant. The cuts are anticipated to affect several of the retailer's major distribution centres across the country.
A spokesperson for Asda explained the rationale behind the proposed changes to its transport operations. The plan involves creating a new regional structure with eight dedicated hubs, each with a regional transport office to coordinate deliveries.
"This approach would deliver several practical benefits, including reducing duplicated tasks, improving regional flexibility, creating more consistent ways of working, and lowering our reliance on agency and haulier support," the spokesman stated.
Streamlining Online Orders with Evri Partnership
Alongside the distribution network changes, Asda is running a separate consultation focused on speeding up its online parcel service. The company revealed it handles a staggering 28 million parcels a year through a network originally not designed for such high demand.
This has resulted in fewer than half of its stores being able to offer next-day parcel collection—a service now expected by shoppers. To address this, Asda plans to partner with Evri.
"By partnering with Evri, all 1,200 Asda locations will be able to offer next-day collection and returns, providing customers with a quicker and more convenient service," the spokesperson confirmed.
Restructuring Follows Challenging Festive Season
These proposed changes come after a difficult Christmas for the supermarket. Sales fell by 4.2% over the festive season, making Asda the only major UK supermarket to report a decline in sales during that period.
Its market share also dropped, falling to 11.4% in the 12 weeks leading up to 28 December 2025, as it continues to face stiff competition from rivals like Tesco and Sainsbury's.
Despite the timing, Asda insists the consultations are solely aimed at improving operational efficiency and are not directly linked to its recent trading performance. The company has stated it cannot yet confirm the final number of colleagues affected, as both consultation processes are in their early stages.
