Asda is reportedly planning more job cuts, following the recent elimination of 500 positions without consultation.
- The upcoming redundancies will affect staff involved in Asda’s Future programme.
- Asda aims to replace legacy systems from Walmart with a new cloud-first digital infrastructure by early 2025.
- Lord Stuart Rose, Asda’s chairman, claimed that employees received better compensation packages than those mandated by law.
- The GMB Union criticised Asda for not adhering to the mandatory consultation period.
Supermarket chain Asda is reportedly on the brink of further downsizing, with additional job cuts anticipated following the recent reduction of 500 roles executed without consultations. This move, reported by The Telegraph, highlights the company’s strategic shift towards a cloud-first digital strategy, intended to overhaul existing systems inherited from Walmart.
These job reductions are set to impact a significant number of staff working on the Future programme, Asda’s ambitious project to modernise its IT infrastructure. As it stands, the completion of this digital transformation is aimed for early 2025, signalling a significant technological shift within the organisation.
Asda’s chairman, Lord Stuart Rose, defended the company’s actions, asserting that the job cuts did not contravene employment laws. He further explained that the compensation packages offered to affected employees were more generous than those required under a typical 45-day consultation period. This stance comes amidst criticism from the GMB Union, which condemned the lack of a formal consultation process for the earlier redundancies.
The absence of consultation resonated across various sectors, prompting discussions regarding the legal and ethical implications of such corporate actions. Drapers sought commentary from Asda, yet a detailed response from the company remains pending as stakeholders continue to evaluate the situation.
The forthcoming job cuts at Asda highlight ongoing challenges as the company navigates its digital transformation amid scrutiny over employment practices.
