Asda is requiring head office employees to work on site at least three days a week, while also announcing job cuts to streamline operations and stabilize its market position.
The changes, communicated in an internal email by interim CEO Lord Rose, will affect more than 5,000 employees in Leeds and Leicester and will come into effect from January 2025.
Since Asda’s £6.8 billion sale to the Issa brothers and TDR Capital in 2021, the supermarket’s market share has fallen from 14.6% to 12.6%, losing ground to Tesco and Sainsbury’s. The decision to reduce remote working brings Asda in line with its competitors and aims to promote a more collaborative and responsive working culture.
In addition to the shift in working policies, Asda will cut certain roles at its head office to “remove duplication and simplify structures”, although the retailer has not specified how many roles will be affected.
Lord Rose, who took on interim leadership after Mohsin Issa resigned, is looking to revive Asda’s performance with the support of TDR partner Rob Hattrell. An ongoing search for a CEO is underway, led by recruitment firm Spencer Stuart, although the role is said to pose challenges in attracting candidates given Asda’s current performance issues.