Asda puts 1,200 jobs at risk in race to cut costs

Core Viewpoint - Asda is implementing significant cost-cutting measures due to a decline in its grocery market share, which has fallen to 11.4% during the festive period, marking a 22nd consecutive month of declining sales [7][8]. Group 1: Job Cuts and Outsourcing - Asda is at risk of losing hundreds of jobs in its warehouses as it outsources online delivery roles for its George fashion range to DHL, affecting 1,200 positions [1][2]. - The outsourcing will involve transferring warehouse staff to DHL under TUPE regulations, which protect their existing pay and benefits [7]. - Union representatives have expressed concerns that the decision may jeopardize jobs, as affected employees might not want to transition to the new roles [2][4]. Group 2: Financial Performance - Sales for Asda in the 12 weeks leading to December 28 were down 4.2%, making it the only major supermarket to experience a sales decline over Christmas [8]. - The company's grocery market share has reached a new low of 11.4%, indicating ongoing struggles in maintaining competitiveness [7]. Group 3: Company Restructuring - The changes are part of a broader effort by Asda's private equity owners, TDR Capital, to restructure the company into separate divisions, including George and Asda Express [9]. - Asda's executive chairman has stated that the reorganization is not intended as a precursor to selling off parts of the company [9].