Asda Announces Major Changes to Workforce and Remote Working Policies

Asda has revealed significant changes to its workforce and remote working policies, which will impact over 5,000 employees across its Leeds and Leicester offices starting in January 2025. The announcement, made through an internal email from interim CEO Lord Rose, comes as the supermarket seeks to address challenges in its market position following its £6.8 billion sale to the Issa brothers and TDR Capital in 2021.

Since the acquisition, Asda’s market share has decreased from 14.6% to 12.6%, with the supermarket losing ground to rivals Tesco and Sainsbury’s. In an effort to align with industry trends and foster a more collaborative work environment, Asda has decided to scale back its remote working policy. The shift is aimed at creating a more responsive and collaborative workplace that mirrors the operational models of its competitors.

Alongside the changes to remote working, Asda will also streamline its head office operations by eliminating certain roles to “remove duplication and simplify structures.” However, the company has not disclosed the exact number of positions that will be affected by these reductions.

Interim CEO Lord Rose, who stepped into the role after Mohsin Issa’s resignation, emphasized that these changes are part of a broader effort to revitalize Asda’s performance. Rose is working closely with Rob Hattrell, a partner at TDR Capital, to lead the supermarket through this challenging period.

The company is also in the process of searching for a permanent CEO, with recruitment firm Spencer Stuart handling the search. However, industry insiders suggest that attracting top candidates may prove difficult due to Asda’s current struggles with market performance.

The restructuring and changes in working policies reflect Asda’s broader strategy to regain competitiveness in the retail sector, where it faces increasing pressure from larger competitors. While the impact on employees remains to be seen, the changes are part of the supermarket’s broader attempt to regain momentum and improve its position in an increasingly competitive market.