Asda has officially scrapped bonuses for over 10,000 managers, stirring frustration and concern over staff morale amid declining sales.
Asda, one of the largest supermarket chains in the UK, has officially discontinued bonuses for over 10,000 of its managerial staff amid ongoing challenges in performance. This decision follows a turbulent year for the retailer, which has faced significant declines in sales and overall performance.
The announcement, which surfaced in early March, reportedly caught many managers off guard, as they learned about the decision through media outlets rather than an internal communication. One manager from South Wales expressed dissatisfaction, stating, “We knew deep down we probably weren’t getting a bonus this year, but it was used as a stick to beat us with during appraisals—hitting targets, being told we needed to perform to earn it. Then to find out through the media, without anything being said in-store, is an absolute joke,” as reported by Grocery Gazette’s sister publication Retail Gazette.
The scrapping of the annual bonus scheme has increased frustration among store managers, particularly as bonuses are typically seen as part of their overall compensation, providing a substantial financial incentive. Another manager highlighted the poor timing of the announcement, noting, “The bonus was due in two weeks, so to be kept in the dark until now feels like a huge lack of respect.” Many employees are concerned that this move represents an effective pay cut, with bonuses accounting for thousands of pounds annually.
Allan Leighton, who returned as chairman of Asda in November 2022, is at the helm while attempting to reverse the supermarket’s fortunes. He has previously indicated that the process of rectifying Asda’s issues will be lengthy. Clive Black, an analyst at Shore Capital, remarked that while Mr Leighton has brought new energy to the company, what is truly required is “a proper overhaul of the group’s engine, not just a 12-month service.” The challenges Asda faces include heightened operating costs due to upcoming legislative changes and a downturn in performance, highlighted as “embarrassing” by former chairman Lord Rose last year.
The GMB union has voiced concerns regarding the handling of job cuts at Asda, stating, “this is not the right way for one of the UK’s largest private sector employers to handle job cuts of this scale.” Since 2022, the supermarket has seen a restructuring that has led to layoffs, including the recent redundancy of 13 regional managers.
In light of these developments, experts predict that the dropping of bonuses may significantly impact staff morale and retention. A former Asda employee stated, “Morale will be rock bottom … This will mean some of the top talent looking elsewhere,” indicating a potential exodus of skilled employees from the company as frustration grows. Furthermore, one recruiter warned that the decision could induce “anarchy” within the organisation if not addressed promptly.
Asda has yet to provide any official commentary on this decision to scrap bonuses.
Source: Noah Wire Services
- https://www.grocerygazette.co.uk/2025/03/03/asda-axes-bonus-10000-staff/ – This article supports the claim that Asda has scrapped bonuses for over 10,000 staff due to declining performance and provides details about the backlash from employees and former staff.
- https://www.gbnews.com/news/asda-anarchy-axe-staff-bonuses-performace – This news piece corroborates the information about Asda’s decision to axe bonuses for thousands of managers, highlighting the impact on staff morale and potential for ‘anarchy’ within the organization.
- https://www.noahwire.com – Although not directly accessible, this source is mentioned as the original provider of the information regarding Asda’s decision to discontinue bonuses for its managerial staff.
- https://www.grocerygazette.co.uk/2025/03/03/asda-axes-bonus-10000-staff/ – This article also discusses Allan Leighton’s return as chairman and his efforts to reverse Asda’s fortunes, including the challenges faced by the supermarket.
- https://www.gbnews.com/news/asda-anarchy-axe-staff-bonuses-performace – GB News further details the decline in Asda’s sales and market share, which has led to significant financial challenges for the company.
- https://www.grocerygazette.co.uk/2025/03/03/asda-axes-bonus-10000-staff/ – The article mentions Asda’s worst Christmas performance in a decade and the impact of sales decline on its market share.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The narrative references recent events and decisions made by Asda, such as the discontinuation of bonuses and the return of Allan Leighton as chairman in November 2022. However, it lacks specific dates for some events, which could indicate slightly outdated information.
Quotes check
Score:
6
Notes:
Direct quotes are provided, but their original sources and dates are not explicitly mentioned. The quotes appear to be from recent interviews or statements, but without further context, it’s difficult to verify their first appearance.
Source reliability
Score:
9
Notes:
The narrative originates from the Birmingham Mail, a reputable local news outlet. However, some quotes and statements are attributed to other publications like Retail Gazette, which may have varying levels of reliability.
Plausability check
Score:
8
Notes:
The claims about Asda’s financial challenges and restructuring efforts are plausible given the current economic climate and previous reports on the company’s performance. However, specific details about morale and potential employee exodus are speculative and lack concrete evidence.
Overall assessment
Verdict (FAIL, OPEN, PASS): OPEN
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
While the narrative is generally plausible and originates from a reliable source, it lacks specific dates for some events and original sources for quotes. The claims about staff morale and potential consequences are speculative and require further verification.
