Asda to cut 475 jobs at its head offices – including its site in Magna Park, Lutterworth

The supermarket chain is also ordering staff back to the office for at least three days a week as part of a major shake-up.

The overhaul of its operations comes as the UK’s third largest supermarket chain looks to arrest a slump in sales over recent months.

It also comes after the latest change in leadership at the private equity-owned retailer.

In an internal email on Tuesday, Asda confirmed that 475 workers will be made redundant at its head offices in Magna Park, Lutterworth and in Leeds.

This represents just less than 10 per cent of the retailer’s head office workforce.

Additionally, fixed-term contractors working on Asda’s IT transformation project will also leave in the coming months as this project finishes.

The letter from chairman Lord Stuart Rose and board director Rob Hattrell said: “Change is never easy and is unsettling, but the executive team believe it is necessary to enter 2025 in a stronger position, fully focused on serving our customers, delivering our ambitions and driving long-term growth.”

In the letter, they also told staff at its three head office locations across Leeds and Leicestershire that they will reduce hybrid working in a bid to improve collaboration and communication.

Head office workers will need to be present at one of its main office locations for a minimum of three days a week from January next year.

In August, the company said it witnessed a 5.3 per cent like-for-like decline in sales over the second quarter of the year.