Grocery giant Asda has told thousands of its employees they will not receive an annual bonus.
It is understood that more than 10,000 managers at Asda have been told they will not be rewarded with bonuses due to the retailer’s “faltering performance”, as reported by The Telegraph.
The bonuses are usually handed out in the first three months of each year to around 10% of Asda’s employees, with around 14,000 staff members receiving one last year.
The news follows a tough year at Asda that saw its market share fall from 13.7% to 12.6%. The year “culminated in Asda’s worst Christmas performance in 10 years”, the report said.
The supermarket is also understood to have seen a sales decline of 5.2% in the 12 weeks to January 28, 2024, according to the most recent data from Kantar.
The bonuses are being scrapped months after Allan Leighton returned to run Asda as executive chair after more than two decades, in a bid to turn things around at the business.
One former senior Asda employee told the newspaper: “Morale will be rock bottom. Even Allan won’t be able to pick them up from this. This will mean some of the top talent looking elsewhere.”
One recruiter also said staff missing out on bonuses could lead to “anarchy” within the business.
Asda declined to comment.
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