A prominent grocery chain is facing the likelihood of over 150 job cuts following a disappointing holiday season. Asda is looking to reduce expenses and streamline operations after struggling to hold onto its market share post-Christmas.

The supermarket experienced a 4.2% decline in festive sales this year, leading to a drop in market share to 11.4%, the lowest it has been in years. Consequently, Asda is considering slashing over 80 management positions, along with potential impacts on numerous warehouse staff.

While Asda grapples with these challenges, competitors like Tesco and Sainsbury’s saw an uptick in sales during the Christmas period. The exact number of job losses is yet to be confirmed, but discussions concerning redundancies are already underway, according to reports from GMB.

GMB, a trade union, is actively supporting affected employees through collective consultations and individual meetings at various distribution centers and depots. As restructuring plans are being discussed, one proposal involves establishing regional hubs for transport operations, while another focuses on parcel handling and engaging with Evri to manage the high parcel volume.

An Asda spokesperson explained that the restructuring aims to optimize operations by eliminating redundant tasks, enhancing regional flexibility, standardizing work processes, and reducing reliance on external support. In a memo obtained by the Telegraph, Asda executives informed staff about the need for fewer regional managers due to the consolidation of sub-regions.

Acknowledging the challenges ahead, the memo expressed the difficulty of bidding farewell to some colleagues. Asda, the UK’s third-largest supermarket chain, previously faced backlash for abrupt job cuts in November without a consultation period.