Thousands of Asda jobs at risk as consultation gets underway 

Asda inquiry

Thousands of Asda staff at 18 underperforming stores, which includes a branch in West Yorkshire, are at risk of losing their jobs or face cuts in working hours.

Britain’s third-largest supermarket chain has begun a consultation with 3,257 employees in stores which are viewed as being overstaffed relative to their current sales performance, The Guardian reported.

The Guardian also reported that Asda is also looking at staffing levels in a further 59 of its supermarkets, though at present this is thought to be an informal process.

The GMB union said it had been contacted by worried Asda workers “fearing for their jobs” after new business plans were shared with store managers that included a substantial reduction in staff hours worked.

The 18 stores facing staff cuts include branches in Halifax, Broadstairs in Kent and the Basildon Eastgate store in Essex.

Last week, the grocer revealed that 2016 profits and revenues has slumped in the worst year for Asda since it was taken over by Walmart.

In accounts filed at Companies House, Asda said that the grocery market as a whole has continued to experience low growth throughout the year, and competition in the sector has remained “intense”.

Like-for-like sales in 2016 decreased 5.7% compared to the previous year, which was already 4.7% down on the year before.

Pre-tax profits declined by 19.9% to £657.2m. A dividend of £450m was paid during the year to owners Walmart despite the slump.

Asda has seen sales dwindle over the past three years, recording 11 consecutive quarters of decline. This led to the exit of chief executive Andy Clarke, who was replaced by Walmart international executive Sean Clarke last year.

The retailer has been rumoured to be in talks to takeover discount retailer B&M, following the news that its Big Four rivals were looking at expanding operations, with Sainsbury’s acquiring Argos and Nisa, and Tesco acquiring Bookers.

Chief executive Clarke was optimistic at the last reported quarter, as sales dropped 2.8% – a massive improvement on the 5.7% fall in the first quarter last year, marking a potential turnaround for the business which has lagged behind rivals including Morrisons.

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