Asda has begun consultations over potential redundancies after reporting a sharp fall in Christmas trading, with around 150 management and logistics roles at risk across the business. The supermarket recorded a 4.2 per cent drop in sales during the 12 weeks to 28 December 2025, making it the only major UK grocer to see a decline over the festive period. The downturn has intensified pressure on senior leadership to cut costs and restructure operations as the retailer faces falling market share, rising costs, and increased scrutiny of its financial position.
Key Takeaways: Asda Redundancy Plans and Christmas Sales Slump
- Asda’s Christmas sales fell 4.2% in the 12 weeks to 28 December 2025
- Around 150 management and logistics roles are at risk
- Market share has declined to about 11.4%, down from nearly 15% in 2021
- Staff consultations and union discussions are underway
- No depot closures are expected under current plans
Sales Decline Triggers Cost-Cutting Measures
Asda is preparing to consult staff over potential redundancies following a significant drop in Christmas sales, which fell by 4.2 per cent in the 12 weeks to 28 December 2025. The supermarket said the decline made it the only major UK grocer to report lower sales during the crucial festive period.
The disappointing performance has heightened pressure on senior management to reduce costs and reassess parts of the company’s operational structure. The Christmas trading setback adds to ongoing challenges faced by the retailer as it seeks to stabilise its finances and improve competitiveness in a crowded grocery market.
Market Share Erosion Adds to Pressure
The sales downturn marked a further setback for Asda, whose market share has continued to slide in recent years. According to The Telegraph, Asda’s share of the grocery market has fallen to about 11.4 per cent, down from nearly 15 per cent in 2021 when the business was acquired by the Issa brothers and private equity firm TDR Capital.
In contrast, rival supermarkets including Tesco and Sainsbury’s reported sales growth over the same period. These competitors benefited from strong promotional activity and improved stock availability during the festive season, highlighting the challenges Asda has faced in retaining customers.
Review of Operations and Management Structure
In response to weaker-than-expected sales, Asda’s executives have begun reassessing the retailer’s operating model. Particular focus has been placed on logistics, distribution, transport planning, and head office management roles.
Over the past year, Asda has already reduced in-store management positions and cut IT staffing following costly system upgrades. The latest redundancy proposals form part of a broader effort to simplify operations, reduce duplication, and address rising costs across the business.
Redundancy Consultations and Roles at Risk
Asda has entered formal consultation with staff representatives and trade unions over proposals that could affect around 150 roles. These include more than 80 management positions, along with a number of jobs in distribution and transport planning.
The company has confirmed that discussions are ongoing and that consultation periods are expected to last several weeks. Final decisions will be taken after the consultation process concludes.
The GMB union has said it is representing affected workers and will seek to minimise compulsory redundancies during discussions with the retailer.
Proposed Changes to Transport and Logistics
One key proposal under review involves moving away from a depot-based transport structure toward a model based on eight regional transport hubs. Asda said the change is intended to improve efficiency and flexibility across its delivery network.
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However, the shift could result in job losses in affected locations, particularly in parts of Yorkshire, where some roles are currently based. The retailer has emphasised that no depot closures are expected as part of the current restructuring plans.
Parcel Operations and Evri Partnership
A separate consultation relates to Asda’s plans to outsource its parcel operations to delivery firm Evri. Under the proposal, Asda said the partnership would allow next-day parcel collection services to be offered at all 1,200 UK stores.
While the move is intended to enhance customer services, it would reduce the need for in-house logistics staff, contributing to the number of roles at risk under the current proposals.
Financial Pressures and Investor Scrutiny
The Christmas sales slump has added to existing financial pressures at Asda. The retailer’s debt position has come under increased scrutiny from investors, with bond prices and loan values falling amid concerns over its turnaround strategy and high borrowing levels.
Despite implementing widespread price cuts on thousands of products, Asda has struggled to reverse customer losses, adding urgency to efforts aimed at improving operational efficiency and restoring confidence in the business.
Leadership Response and Staff Support
Executive chairman Allan Leighton has acknowledged the challenges facing the retailer and said that restructuring is necessary to align Asda with current trading conditions. The company has stated that it will offer support to staff affected by the proposals throughout the consultation process.
Asda has reiterated that it does not expect depot closures as part of the current plans and that the focus remains on simplifying operations while managing the impact on its workforce.
Balancing Restructuring and Competition
With job cuts under consideration and competition in the UK grocery market intensifying, Asda faces a critical period. The retailer is attempting to balance the need to reduce costs and restructure operations while seeking to restore sales momentum and remain competitive against larger rivals that have posted stronger festive performances.
Spiritual Perspective on Material Uncertainty
The developments at Asda reflect a broader reality of modern economic systems, where market pressures, financial structures, and operational decisions directly affect livelihoods. Spiritual thinkers have often highlighted the temporary and uncertain nature of material stability.
Tatvdarshi Sant Rampal Ji Maharaj has emphasised that while professional work and economic planning are necessary, overdependence on material systems can lead to anxiety and imbalance. According to His Spiritual Knowledge, true stability comes from aligning one’s actions with ethical conduct, clarity of purpose, and inner awareness. Such perspectives encourage individuals and institutions alike to balance material responsibilities with long-term human and moral considerations, especially during periods of economic restructuring and workforce uncertainty.
FAQs on Asda Redundancy Plans After Christmas Sales Slump
Q1. Why is Asda planning redundancies?
Asda is planning redundancies after Christmas sales fell 4.2%, increasing pressure to cut costs and restructure operations.
Q2. How many jobs are at risk at Asda?
Around 150 management and logistics roles are at risk under the current redundancy proposals.
Q3. What period did the sales decline cover?
The sales decline covered the 12 weeks to 28 December 2025.
Q4. Will Asda close any depots?
Asda said it does not expect any depot closures as part of the current plans.
Q5. Are trade unions involved in consultations?
Yes, the GMB union is representing affected workers during the consultation process.
