Asda is set to cut 475 roles at its head offices in Leeds and Leicester. Staff are also being told they they must return to working on site, for a minimum of three days per week from January.
The supermarket giant reportedly announced the change via an internal email to staff. It will affect approximately 5,000 office workers at its Asda House and Britannia House sites in Leeds, as well as the George House site in Leicester.
A spokesperson told The Telegraph that “this approach brings us in line with our competitors” and aims to “build high-performing teams with a collaborative culture”.
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The news follows closely on the heels of Mohsin Issa stepping down from his executive leadership role, with former M&S chief executive Lord Stuart Rose taking over the reins of the retailer on a temporary basis. The decision does not affect retail workers.
(Image: AFP via Getty Images)
Issa remains a co-owner of the chain, alongside private equity backer TDR Capital, and continues to serve as a non-executive on the board.
This news comes after Asda reported a 2.2% drop in total revenues, excluding fuel, to £5.3billion from April to June 2024. Its like-for-like sales were down by 5.3%, reports the Mirror.
An Asda spokesperson stated: “The changes which are being communicated today will result in 475 colleagues being made redundant at our head offices in Leeds and Leicester. In addition, fixed-term contractors who are working on our IT transformation project will also leave over the course of the next few months as this project finishes.”
(Image: Bloomberg via Getty Images)
Retail tycoons, the Issa bros Zuber and Mohsin made waves when they snapped up Asda from Walmart in a massive £6.8billion deal with a little help from TDR Capital back in 2020. Just last week, Zuber Issa cashed out, flogging his beefy 22.5% slice of Asda to TDR Capital for an undisclosed sum.
With TDR now flexing a big majority shareholder muscle of 67.5%, Mohsin Issa hangs onto his 22.5% piece of the pie, while Walmart holds onto a modest 10%.
Confirming his September’ announcement, Mohsin said: “I have decided now is the right time for me to step back from my oversight role at Asda to focus on EG Group as sole chief executive.
(Image: Bloomberg via Getty Images)
“It is a very exciting time for EG Group, and I am looking forward to focusing on the business while supporting Stuart, Rob and the leadership team in my capacity as a shareholder of Asda.”
Retail heavyweight Lord Rose commented: “We respect Mohsin’s decision to move on from his role at Asda where his work is complete to be the sole chief executive of EG Group. We are very grateful to Mohsin for the role he has played in overseeing Asda.”
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