Struggling supermarket Asda has put 1,200 roles at risk of redundancy, a union has claimed.
Asda is reportedly cutting more jobs. (Image: Getty)
Asda has put up to 1,200 warehouse roles at risk of redundancy, a union has claimed. The job cuts come after a decision to outsource the delivery of its George fashion range to US parcel service giant DHL. The changes will affect staff working at clothing depots in Lymedale, North East clothing and Brackmills.
Speaking to the Telegraph, Nadine Houghton, a GMB trade union national officer, said: “In the Lymedale depot alone, there are 14 couples with children whose entire household income relies on working there.
“GMB is clear; the private equity buyout of Asda has been a disaster for workers, customers, the supply chain and communities.
“The recent job cuts announcement and now the outsourcing of clothing distribution pave the way for a full carve-up of the company.”
In a fervent response to the GMB claims, Asda Chair Allan Leighton said “The suggestion that we are looking to break up the business is categorically untrue and, frankly, insulting to all our colleagues. There is only one agenda in this business – it’s called the Formula for Growth, and we are solely focused on that.”
Asda has faced some difficult retail numbers in recent months (Image: Getty )
It’s reported Asda is seeking to cut costs after a fall in the grocery market by 11.4% over Christmas and the New Year. The Telegraph reports, sales for Asda in the 12 weeks to December 28 were down 4.2% which would have made the retail giant the only supermarket chain to suffer a drop in sales over the festive period.
GMB union officer Ms Houghton said of the mooted worker lay-offs that “hard-working families and working-class communities should not see their livelihoods put at risk”, blaming Asda’s private equity owners, TDR Capital, for the “business decisions of a handful of private equity executives”.
A union has warned Asda could be about to enact job losses (Image: Getty )
Companies House filings show 17 partners shared profits of £31.3 million in the year to April.
According to GB News, Asda confirmed that two separate consultations are taking place across its 21 depots nationwide. One focuses on restructuring transport operations, with plans to create eight regional hubs overseen by coordinating offices.
An Asda spokesman said the approach would streamline operations, “reducing duplicated tasks, improving regional flexibility, creating more consistent ways of working, and lowering our reliance on agency and haulier support.”
The second consultation concerns Asda’s parcel‑handling operation.
David Lepley, Asda’s Chief Supply Chain Officer, said: “This proposal supports the continued growth of our George.com business as we seek to achieve our ambition for George to become the UK’s largest clothing retailer by volume.
“The proposed change would begin in January 2027 and be completed later that year. Any colleagues who transfer will do so under TUPE regulations, which protect their existing pay, pension, and length of service.”
