Asda has concluded a phase of its “Project Future” IT transformation, resulting in the departure of over 200 contracted employees. This move follows the completion of significant workstreams within the £800 million initiative, designed to decouple the supermarket’s IT systems from its former parent company, Walmart.
The “Project Future” program, recognized as one of Europe’s largest systems implementations, has faced challenges and delays. Walmart has granted Asda an extension to the project’s completion timeline, mitigating potential financial penalties.
An Asda spokesperson confirmed that with key phases of Project Future concluding, the departure of contracted personnel is a natural progression. “As specific workstreams they are working on are completed or as their contracts finish,” the spokesperson stated.
In a parallel move, Asda is integrating its IPL sourcing and logistics division into its central management structure. This restructuring is aligned with the company’s “Formula for Growth” strategy, aiming to enhance operational efficiency by integrating IPL’s leadership teams into relevant Asda functions.
These workforce adjustments occur amidst a challenging market environment for Asda. Recent market share data indicates a decline from 13.7% to 12.6% over the past year, with sales figures showing a 5% drop in the four weeks leading to February 23rd.
This phase of workforce reductions follows previous restructuring efforts, including the elimination of regional management roles and other redundancies, as Asda adapts to evolving market conditions and operational needs. The company reiterates its commitment to optimizing its operational structure to support its strategic growth objectives.
