Asda to axe 475 jobs and orders staff back to the office three days a week

Asda is axing 475 roles at its head offices in Leeds and Leicester - and has also told staff that they must come in for a minimum of three days a week from January.

The reportedly announced the change - which will apply to around 5,000 office workers at its House and Britannia House sites in Leeds, as well as the George House site in Leicester - in an internal email to staff. A spokesperson told "this approach brings us in line with our competitors" to "build high-performing teams with a collaborative culture".

The update does not impact its retail workers. It comes just weeks after Mohsin Issa stepped down from his executive leadership role, with former chief executive Lord Stuart Rose taking over the running of the retailer on an interim basis.

READ MORE:

READ MORE:

He remains co-owner of the chain, alongside private equity backer TDR Capital, and a non-executive on the board. It also comes after Asda reported a 2.2% decline in total revenues, excluding fuel, to £5.3billion from April to June 2024. Its like-for-like sales were 5.3% lower.

A spokesperson from Asda said: "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."

Brothers Zuber and Mohsin Issa bought Asda from Walmart in 2020, in a £6.8billion deal with the backing of TDR Capital. Confirming the news that he will step down back in September, 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.

“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.”

Lord Rose said: “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.”

READ MORE: