Aldi cuts hundreds of jobs in the UK — The Guardian

The UK division of the German discount supermarket chain Aldi is cutting hundreds of positions in its head office and logistics operations as part of a global cost review. Jobs in the company’s stores have not been affected by the decision, although Aldi has slightly reduced the number of regional managers. This was reported by The Guardian.

Job cuts in the technology division

The company is consulting employees in its technology team over the possible elimination of up to 150 positions. Earlier this year, Aldi had already cut 103 jobs in its finance and administrative divisions, as well as nearly 20 roles among purchasing directors.

One employee affected by the changes called the cuts short-sighted and said senior management was out of touch with reality. According to the publication, the company has also reduced the working hours of agency-employed cleaners at its head office in Atherstone, Warwickshire.

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Centralisation of operations

Aldi is reducing staff in local operations in different countries by centralising some functions. The company is outsourcing finance, procurement and administrative tasks to India and other countries under an agreement with Genpact, which is helping the business expand its use of artificial intelligence technologies. Sources at The Guardian also said that consultations on cuts in payroll could begin in the coming months.

Aldi said it continually reviews the working processes of its international business to operate more simply and efficiently and keep prices low for customers. The company noted that the changes would be introduced gradually after consultations and that affected employees would receive support.

Slowing sales growth

According to Worldpanel by Numerator, Aldi’s sales in the UK rose by only 0.4% in the 12 weeks to 1 November, while the chain’s market share fell by 0.1 percentage points year on year. At the same time, Aldi’s average unit price fell by 0.1%, making the chain the only retailer to reduce prices overall during the period. This year, Aldi invested £300 million in cutting prices on 900 products in the UK.