Asda to cut nearly 500 jobs with staff told return to office three days a week

Asda is set to cut nearly 500 jobs at its headquarters in Leeds and Leicester, with staff being instructed to return to the office for at least three days a week starting from January. The supermarket giant made this announcement to around 5,000 office workers at its Asda House and Britannia House sites in Leeds, as well as the George House site in Leicester, through an internal email.

A spokesperson from Asda stated that this decision aligns the company with its competitors to establish high-performing teams with a collaborative culture. However, this change will not affect the retail staff of the company. This move comes shortly after Mohsin Issa left his executive leadership position, with former M&S chief executive Lord Stuart Rose taking over as the interim head of the retailer.

Following a decline in total revenues, excluding fuel, to £5.3 billion from April to June 2024, Asda reported a 2.2% drop. The supermarket chain clarified that 475 colleagues in the head offices in Leeds and Leicester will be made redundant. Additionally, fixed-term IT contractors working on a transformation project will also be leaving in the coming months as the project concludes.

Mohsin Issa, one of the co-owners of Asda alongside his brother Zuber and with a 22.5% stake, will step down to focus on his role as the sole chief executive of EG Group. Lord Rose expressed gratitude towards Mohsin for his contributions to Asda, while Mohsin himself highlighted his excitement to focus on EG Group’s ventures.

In summary, Asda’s decision to cut jobs and implement a return-to-office policy reflects the company’s strategy to streamline operations and foster a collaborative work environment. The leadership changes and financial challenges faced by the supermarket chain signify a period of transition and adaptation amidst evolving market dynamics.