LONDON, Jan 18, 2026, 21:35 GMT
- Asda has launched redundancy talks that may threaten over 150 distribution jobs, according to UK media reports
- The plans call for eight regional transport control hubs and involve outsourcing certain parcel deliveries to Evri.
- These moves come as Asda struggles with a disappointing Christmas performance and growing investor concerns over its debt levels
Asda has launched redundancy consultations that may threaten over 150 jobs, UK media reported Sunday. The talks come as the retailer looks to revamp parts of its distribution network.
The reviews follow a disappointing Christmas trading stretch, during which the grocer lost ground to competitors. Sales reportedly dropped 4.2% over the festive season, pushing market share down to 11.4% in the 12 weeks ending Dec. 28.
Behind the scenes, lenders and investors are turning up the heat. The Financial Times revealed this week that Asda’s traded debt has been hit by heavy selling since the Christmas downturn. This adds fresh pressure on the privately held chain as it struggles to regain its footing.
The Grocer revealed Asda is eyeing a big shake-up in its distribution management, potentially impacting over 150 jobs. The plan involves moving transport planning away from individual depots towards eight “regional control hubs,” the report says. https://www.thegrocer.co.uk/news/asda-depot-restructure-could-affect-over-150-management-roles/714055.article
Asda is holding a second consultation on parcel handling, planning to outsource part of the work to delivery company Evri. The retailer processes over 28 million parcels annually but said that “fewer than half” of its stores currently offer next-day parcel collection. https://www.thesun.co.uk/money/37941793/supermarket-axe-jobs-shake-up-plummeting-sales/
Evri and Asda have been collaborating on in-store parcel services, with Evri announcing in October its intention to expand the service to all 1,200 Asda stores by April 2026. At the time, Evri chief executive Martijn de Lange described the deal as “landmark,” saying it would provide customers with “choice, convenience and control.” https://www.evri.com/press/evri-and-asda-launch-parcelshop-service
The GMB union confirmed it is backing members during the consultation phase. Nadine Houghton, the union’s national officer for Asda, told managers in a note, “Your union will be doing everything possible to protect jobs.” https://www.gmb.org.uk/private-sector/retail-and-distribution/asda/asda-als-managers
However, the consultation process doesn’t clarify the final headcount, and timelines often shift once local site negotiations begin. Any hiccups in transport planning or parcel fulfilment could quickly impact the business areas customers care about most: store stock levels and delivery times.
Asda’s fresh cost-cutting efforts come amid growing unease in credit markets over its heavy debt load from the 2021 buyout by TDR Capital and the Issa brothers. Retail Gazette noted that a €1.3 billion term loan and €700 million in bonds have dropped in price, signaling investors now want bigger returns to shoulder the risk.
Allan Leighton, who stepped back into the executive chairman role in late 2024, cautioned that the turnaround won’t happen overnight. “It is going to take us that long to get it right,” he told the Guardian, outlining a three to five-year commitment to the task. https://www.theguardian.com/business/2024/nov/05/asda-allan-leighton-has-three-to-five-year-plan-to-turn-supermarket-around
Asda has been slashing prices and rolling out promotions to halt its decline, but Tesco and Sainsbury’s are snapping up market share, while Aldi and Lidl continue drawing bargain hunters. The depot revamp aims to trim costs behind the scenes without leaving shelves bare.
Asda has yet to reveal the final number of job cuts, with consultations still ongoing. The retailer also insists that depot closures are not anticipated under the current plans.
