Asda is addressing its sales challenges by requiring head office staff to return to office work three days a week.
- More than 5,000 Asda employees will be affected by this new office attendance policy starting January 2025.
- The changes coincide with announced job cuts aimed at simplifying organisational structures and eliminating redundancies.
- Asda’s leadership aligns its remote work policy with competitors to foster a collaborative culture and high-performing teams.
- Lord Rose is spearheading this transition amid ongoing efforts to stabilize the company’s economic performance.
In a strategic move to address its declining sales, Asda has instituted a policy mandating that its head office staff work from the office a minimum of three days per week. This directive will affect over 5,000 employees across Asda’s offices located in Leeds and Leicester. The organisation communicated this change through an internal email, indicating a compulsory start from January 2025. Lord Rose, Asda’s chairman and interim chief executive, conveyed that this shift is designed to enhance focus on customer service and long-term growth, describing it as necessary despite the inherent challenges of change.
Parallel to the return-to-office directive, Asda has also announced that it will be implementing job cuts at the head office. These reductions are part of a broader effort to remove duplicative roles and streamline corporate structures. However, the company has not disclosed the exact number of positions that will be impacted. Lord Rose acknowledged the unsettling nature of such changes but emphasised their importance for strengthening Asda’s position as it moves forward into 2025.
The new work policy is not exclusive to Asda, as it reflects similar strategies adopted by competing supermarkets, including Tesco, Aldi, and Morrisons. By aligning with industry trends, Asda aims to foster a productive and cohesive work environment that can more effectively respond to business needs. According to an Asda spokesperson, re-establishing office attendance aligns with wider market practices and supports the company’s ambitions to build effective and collaborative teams.
The restructuring and policy changes come at a time of significant upheaval for Asda, following a challenging year marked by sales setbacks. In a recent leadership transition, Lord Rose took on additional executive responsibilities after Mohsin Issa’s departure as CEO. As the company undertakes a search for a permanent CEO, these strategic adjustments are part of a broader turnaround plan intended to revitalise Asda’s market performance.
As Asda navigates through organisational changes to counteract sales declines, its focus remains on reinforcing team collaboration and achieving sustainable growth.
