Aldi to reduce UK workforce as part of global efficiency drive

Approximately 150 roles within the technology team are being considered for elimination, following earlier cuts of 103 positions in the finance and administration departments and an additional 20 among buying directors. One employee expressed concern, calling the reductions “shortsighted” and indicative of a disconnect between management and current realities.

While store-based jobs remain unaffected, a small number of high-paying regional manager positions have been reduced. The company is centralizing functions and shifting some operations to other countries, including India, through a partnership with Genpact, a firm specializing in AI technology implementation for businesses. This outsourcing involves finance, procurement, and administrative roles.

Further redundancies are anticipated in the payroll department in the coming months, according to sources. Additionally, cleaning hours for agency workers at Aldi’s head office in Atherstone, Warwickshire, have recently been reduced.

An Aldi spokesperson stated, “At Aldi, our promise to customers is that we will always offer great quality products at unbeatable prices. Across our international business, we continuously review all aspects of our operations to ensure we operate simply, efficiently and use our global scale to deliver on that promise.” They added that any changes are being implemented gradually and with a consultation period, and that support is being provided to affected employees.

The company recently invested £300 million to lower prices on 900 products in the UK this year.

These changes occur during a period of slower growth for Aldi. Sales in the 12 weeks leading up to November 1st only increased by 0.4%, resulting in a slight decrease in market share. Despite this, Aldi was the only retailer to lower overall prices during that period, with an average unit price decrease of 0.1%.

The company faces increased competition from traditional supermarkets who are now matching Aldi’s prices on key items. Recent cost-cutting measures have also been implemented by competitors, including Morrisons, Sainsbury’s, Tesco, and Asda, reflecting a broader trend in the retail sector.