Asda, one of the UK’s largest supermarket chains, is reportedly considering further job cuts, following the recent wave of 475 redundancies carried out without a formal consultation period. The latest cuts are expected to target employees involved in the retailer’s IT transformation program, known as “Project Future,” which is nearing completion.

The recent layoffs, according to sources cited by The Telegraph, primarily impacted workers brought on for specific tech-focused roles as part of the modernisation effort. While Asda has not provided a concrete figure, senior executives described the number of potential layoffs as “meaningful,” sparking concerns over the scale of the changes.

The supermarket’s decision to proceed with these abrupt job cuts without a 45-day consultation period has been met with criticism and scrutiny. Typically, UK employment laws mandate a consultation process when large-scale redundancies are on the horizon, intended to allow for employee input and sufficient notice. 

However, Asda’s chairman, Lord Rose, defended the company’s approach, describing it as the most “humane way” to manage the lay-offs. He claimed that affected employees were provided with greater compensation than they would have received in a standard consultation, thus avoiding weeks of uncertainty.

Union representatives and labor advocates, however, have raised questions over the legality of Asda’s actions and are reportedly considering discrimination claims against the company. They argue that while Asda may have offered extra compensation, the lack of a consultation period left employees without proper support or preparation, heightening concerns about job security across the organization.

The redundancies were implemented as Asda seeks to streamline its operations and reduce costs, following challenges faced by major retailers in the post-pandemic economy. “Project Future,” Asda’s ambitious IT overhaul, was launched to enhance its digital infrastructure, improve efficiency, and adapt to the shifting retail landscape. However, as the project draws to a close, many of the staff hired specifically for the transition phase may find their roles redundant, as the company shifts its focus to maintaining, rather than developing, its digital systems.

The timing of the layoffs has further intensified public scrutiny of Asda’s restructuring plans. This latest round of cuts adds to the growing list of redundancies among UK supermarket chains, which have faced mounting operational costs and increased competition in recent years. Industry analysts note that while modernization projects like “Project Future” are critical for staying competitive, the resultant layoffs highlight the tension between digital transformation and job stability.

Lord Rose has maintained that the company’s approach to the layoffs was both legal and fair, aiming to prioritize employees’ welfare during a challenging restructuring process. Asda is expected to continue implementing adjustments to its workforce, with further details anticipated in the coming months as the company navigates the complexities of an evolving retail market.

As union representatives consider potential legal action, Asda’s employment practices may be subject to closer scrutiny, particularly concerning the absence of the consultation period. The situation underscores the broader challenges faced by UK supermarkets as they adapt to a rapidly changing market, balancing digital advancements with the human impact of operational shifts.