Asda Axes 1,360 Management Jobs on Restructuring Plan

UK supermarket chain Asda plans to axe more than 1,360 management jobs as part of a major restructuring pan.

The firm, which has 578 UK stores and is owned by US retail giant Walmart, also said that it will create 5,630 new roles (1,662 section managers and 4,008 section leaders) as part of the programme.

The move is part of the strategy that Asda unveiled last November in response to "intense structural changes" in the market that it identified in 2012.

"As much as it is my job, and privilege, to be chief executive of this business and to do what is right for Asda as a whole, this is one of the most difficult decisions I've had to make," said Andy Clarke, chief executive of Asda.

"Whilst I genuinely believe that it is the right decision for the future of Asda, knowing that it will result in valued colleagues leaving us is not easy.

"Every supermarket must adapt to the intense changes in UK retailing or they will get left behind.

"We spotted this nearly two years ago, responding with a new strategy and taking time to thoroughly examine our structures, test scenarios, talk to our colleagues and adjust our proposals accordingly.

"This thorough process has helped us to reach this difficult decision today."

The supermarket explained that over the coming weeks, managers affected by the changes across Asda stores will either begin training for their new jobs or take a redundancy package.

The news comes after Asda increased its market share by 3.6% compared to last year in the UK to 17.1% in the 12 weeks to 22 June, according to Kantar Worldpanel.