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Asda eyes more job cuts after head office redundancies

Asda eyes more job cuts after head office redundancies

Asda is planning more job losses after it made nearly 500 head office employees redundant without a consultation period.

The supermarket is thought to be targeting the staff working on its IT overhaul, which is expected to complete early next year, in its next wave of redundancies, The Telegraph reported.

Asda refused to confirm how many employees would be affected but stated the number would be “meaningful”.

It follows the grocery chain’s decision to make hundreds of head office staff redundant last week in efforts to “remove duplication and simplify structures”.

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Government rules typically require companies looking to dismiss 100 employees or more to carry out a 45-day consultation. There is no suggestion that Asda broke the law.

Chairman Lord Rose claimed that no employment rules had been breached, adding that the abrupt dismissals were the more “humane way” to carry out the job cuts.

Rose said this was an due to Asda removing weeks of uncertainty for affected staff and awarding them more compensation than would have received during a consultation.

He said: “We said to them, ‘Right, we are going to offer you a package that is greater than what you would have got through consultation’.

“People understand that and they respect that. It’s a painful process but it has been done in a humane way.”

Asda has been contacted for comment.

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