Asda sacks 1,360 managers under major restructure

More chaos in the wake of the discounters' rampage: Asda is planning to make 1,360 redundancies, at the same time as creating 5,670 new roles.

by Emma Haslett
Last Updated: 07 Jul 2014

As the rampage of discount supermarkets like Aldi and Lidl continues, other supermarkets are left reeling. Asda is the latest to admit to its shortcomings: this afternoon, trade bible Retail Week reported that the supermarket is about to undergo a radical restructure, during which 1,360 management jobs will be lost - although it will also create 5,630 jobs.

The changes were originally mooted in May, when it said 1,400 jobs were under threat, while it expected to create 5,000 new posts. Although most of the roles affected are management level, the supermarket added today that 4,100 jobs will be affected by the restructure. It's telling that some of the jobs affected are those managing ecommerce: although Asda is ahead of rival Morrisons, which only launched its online offering last year, it's still not up there with, say, Tesco.

Andy Clarke, the supermarket's chief executive, told Retail Week the restructure is 'one of the most difficult decisions I've had to make'.

He isn't the only one who's had to make a decision like this, though: in June, Morrisons announced plans to sack 2,600 managers. And arguably, Asda is doing better than a lot of its peers: it's one of the few traditional supermarkets whose market share actually grew in the 12 weeks to June 22, from 16.9% to 17.1%.

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