Asda Redundancy Plans Put 150 Management Jobs at Risk After 4.2% Christmas Sales Slump

Asda is preparing to consult staff over potential redundancies after reporting a sharp fall in Christmas trading, putting more than 150 management and logistics roles at risk across the business.

The supermarket said sales fell by 4.2 per cent in the 12 weeks to 28 December 2025, making it the only major UK grocer to record a decline during the crucial festive period. The disappointing performance has increased pressure on senior management to reduce costs and overhaul parts of the company's operational structure.

Asda's market share has continued to slide in recent years, prompting a review of distribution, transport planning and middle management roles as the retailer attempts to stabilise its finances and regain competitiveness in a crowded grocery market.

Sales Slump Trigger Restructuring Review

The Christmas downturn marked a further setback for Asda, whose market share has fallen to about 11.4 per cent, down from nearly 15 per cent in 2021 when the business was acquired by the Issa brothers and private equity firm TDR Capital, according to The Telegraph. Rivals including Tesco and Sainsbury's reported sales growth over the same period, benefiting from strong promotional activity and improved stock availability.

Executives have begun reassessing Asda's operating model, particularly in logistics and head office management. The retailer has already cut in-store management roles and reduced IT staffing over the past year following expensive system upgrades.

The latest plans form part of a broader effort to simplify operations and reduce duplication across the business, as Asda seeks to address rising costs and weaker-than-expected sales.

Redundancy Consultations Underway

Asda has entered formal consultation with staff representatives and trade unions over proposals that could affect around 150 roles. These include more than 80 management positions and a number of jobs within distribution and transport planning.

One proposal involves moving away from a depot-based transport structure in favour of eight regional transport hubs. The company says the change would improve efficiency and flexibility across its delivery network, but could lead to job losses in affected locations, particularly in parts of Yorkshire.

A separate consultation relates to plans to outsource parcel operations to delivery firm Evri. Asda says the partnership would enable next-day parcel collection services at all 1,200 UK stores, though it would reduce the need for in-house logistics staff.

The GMB union has confirmed it is representing affected workers and said it would seek to minimise compulsory redundancies during the consultation process.

Financial Pressures and Outlook

The sales slump has added to financial strain at the retailer. Asda's debt has come under increased scrutiny from investors, with bond prices and loan values falling amid concerns over the company's turnaround strategy and high borrowing levels.

Executive chairman Allan Leighton has acknowledged the challenges facing the business and said restructuring is necessary to align Asda with current trading conditions. Despite widespread price cuts on thousands of products, the retailer has struggled to reverse its loss of customers.

Asda said it does not expect depot closures as part of the current plans and will offer support to staff affected by the proposals. Consultation periods are expected to last several weeks, after which final decisions will be taken.

With job cuts under consideration and competition intensifying, the retailer faces a critical period as it attempts to restore sales momentum while managing the impact of restructuring on its workforce.