Asda to axe jobs
Asda are going to sack hundreds of people, as they continue to struggle in the supermarket price wars. The main focus for job cuts is going to be at their head office in Leeds, which is bad news indeed.
This news comes after most of Asda's rivals announced that they'd had a better-than-expected Christmas period, and analysts think that the Wal-Mart owned business won't match up. We won't find out how well, or poorly Asda have done until Wal-Mart updates Wall Street in February.
Data from Kantar Worldpanel suggests that Asda's sales declined by 3.5% in the 12 weeks to January 3rd.
Sky News got a statement from Asda: "It’s well documented that in recent years, customers have radically changed the way they shop."
"We were the first of the 'big four' to recognise this and launch a new strategy in 2013 yet the external pressures have accelerated at an increasingly rapid rate over the last 18 months. As a result, the industry faces major challenges and the certainty of permanent structural change. In the context of this, we also have to further change the way we do business."
"Today, we have started to talk to our colleagues in head office functions about what this means for them. We have made some difficult but necessary decisions but we must discuss these with our colleagues before we talk publicly."