Up to 1,200 jobs are at risk at Asda, as part of a planned restructure of its George distribution network.
Under the proposals, which are set for 2027, Asda would outsource and relocate fulfilment for George.com online orders – which are currently handed by its Lymedale, Northeast Clothing and Brackmills depots – to a single DHL depot in Derby.
As part of the consultation, affected workers will be offered TUPE transfer to DHL – though they would have to move to work at the Derby DC. If they cannot find roles elsewhere in the three depots, they will be made redundant.
Only roles working with George.com fulfilment are affected, Asda said. It has no plans to close any of the three depots, which handle distribution for other parts of the Asda business.
“This proposal supports the continued growth of our George.com business as we seek to achieve our ambition for George to become the UK’s largest clothing retailer by volume,” said David Lepley, Asda chief supply chain officer.
“The proposed change would begin in January 2027 and be completed later that year. Any colleagues who transfer will do so under TUPE regulations, which protect their existing pay, pension, and length of service.”
Asda informed affected colleagues of the proposals today. Workers are being represented by the GMB union.
“GMB’s priority is and always will be to protect our members’ jobs – we give our members our unwavering commitment on this,” said GMB national officer Nadine Houghton.
“In the Lymedale depot alone there are 14 couples with children whose entire household income relies on working there.
“GMB is clear; the private equity buyout of Asda has been a disaster for workers, customers, the supply chain and communities.”
It’s the second wave of potential job cuts from Asda’s distribution network in less than a week. More than 150 roles were put at risk as part of a planned restructure of management teams across Asda’s 21 depots last week, as private equity owner TDR looks to cut further costs to fund Allan Leighton’s turnaround plan.
Having started 2025 with 200 job cuts across store management and IT in March – Asda recorded poor Christmas sales.
Asda claims the latest restructure is necessary in order to ensure it can meet future demand for George.com orders, which it expects to double in size by 2032. It currently processes more than 16 million orders across its four George.com fulfilment sites.
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