Asda is cutting over 200 jobs as part of a major restructuring effort following a troubled IT upgrade. The supermarket giant, co-owned by Mohsin Issa, is working to develop its own technology system to reduce reliance on its former owner, Walmart.
This initiative, known as “Project Future,” has faced significant challenges, leading to delays and now job losses. The affected employees were let go without consultation, marking the second round of redundancies in just five months.
The job cuts come after a difficult period for Asda, including its worst Christmas performance since 2015, which previously led to the dismissal of 13 regional managers. Chairman Allan Leighton, who oversaw these redundancies, also scrapped staff bonuses for 10,000 employees.
In November, 500 workers were laid off without consultation, prompting union leaders to threaten discrimination claims, though there is no evidence that Asda broke the law.
Asda’s market share has also declined, dropping from 13.7% to 12.6% over the past year, while competitors like Tesco and Sainsbury’s have seen growth. Recent data from Kantar revealed that Asda’s sales fell by 5% in the month leading up to February 23, 2025, compared to the same period in 2024, making it the only major supermarket to experience a sales decline during that time.
An Asda spokesperson explained that the job cuts were a natural outcome of Project Future, as many teams had completed their workstreams or reached the end of their contracts.
Despite the challenges, the spokesperson emphasized that the majority of operations had successfully transitioned to the new systems.
The redundancies highlight the pressures facing Asda as it seeks to modernize its operations and remain competitive in a challenging retail environment. However, the job losses and declining sales raise questions about the company’s strategy and its impact on employees and market performance.
