Asda to cut 475 jobs and orders staff back to office three days a week

Asda is to cut 475 head office jobs and order staff back to the office for at least three days a week as part of a major shake-up.

The overhaul of its operations comes as the UK’s third largest supermarket chain looks to arrest a slump in sales over recent months.

It also comes after the latest change in leadership at the private equity-owned retailer.

In an internal email on Tuesday, Asda confirmed that 475 workers will be made redundant at its head offices in Leeds, West Yorkshire, and Lutterworth, Leicestershire.

This represents just less than 10% of the retailer’s head office workforce.

Additionally, fixed-term contractors working on Asda’s IT transformation project will also leave in the coming months as this project finishes.

The letter from chairman Lord Stuart Rose and board director Rob Hattrell said: “Change is never easy and is unsettling, but the executive team believe it is necessary to enter 2025 in a stronger position, fully focused on serving our customers, delivering our ambitions and driving long-term growth.”

Former Marks & Spencer boss Lord Rose is leading the business alongside former eBay senior vice president Rob Hattrell after co-owner Mohsin Issa stepped back from running Asda in September.

In the letter, they also told staff at its three head office locations across Leeds and Leicestershire that they will reduce hybrid working in a bid to improve collaboration and communication.

Head office workers will need to be present at one of its main office locations for a minimum of three days a week from January next year.

The retailer said it will refresh its Asda House office in Leeds with an improved catering offer, onsite Asda Express and more meeting spaces as part of the strategy.

It comes ahead of Asda’s latest quarterly results update on Friday.

In August, the company said it witnessed a 5.3% like-for-like decline in sales over the second quarter of the year as shoppers switched to its largest rivals.