Asda risks losing top talent after scrapping bonuses for 10,000 managers
Asda has informed thousands of its employees that they will miss out on their annual bonuses following a challenging year for the supermarket.
Asda has informed thousands of its employees that they will miss out on their annual bonuses following a challenging year for the supermarket.
According to The Telegraph, more than 10,000 managers are understood to have been told that bonuses will not be paid this year due to the retailer’s underperformance. Typically, the retailer’s managers receive their bonuses in the first quarter of each year.
The decision to cancel bonuses comes as the supermarket seeks to manage costs and allocate more resources to price reductions, but it’s expected to have a negative impact on morale across the business.
One former senior employee told the title morale would likely be “rock bottom,” and warned that some top talent could look for new opportunities elsewhere. While one recruiter suggested missing out on bonuses could lead to “anarchy” within the company.
The retailer has also faced backlash from unions over its approach to job cuts. Last year, Asda made several head office redundancies without prior warning, with the GMB union calling the handling of the cuts “unacceptable.”
The supermarket’s bonus scheme typically covers around 10% of its 134,500 employees, equating to approximately 14,000 workers.
The announcement of the bonus cuts follows recent restructuring efforts by Allan Leighton, Asda’s executive chairman. In February, Leighton launched a major restructuring of senior teams, leading to the departure of 13 regional managers.
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The grocer has faced ongoing challenges since its acquisition by the Issa brothers and private equity firm TDR Capital back in 2021. Its market share has continued to slide, from 14.8% in January 2021 to 12.5% in January 2025.
Meanwhile, Asda experienced its worst Christmas performance in a decade, with sales falling 5.8% during the 12 weeks to 29 December, according to data from Kantar.
In addition to the bonus cuts, the supermarket is grappling with rising costs, including a new recycling levy, National Insurance, and National Living Wage increases. Analysts have warned that costs are expected to rise significantly in the coming months.
Clive Black, an analyst at Shore Capital, stated that while Leighton had injected “new energy” into the company, Asda required more than just short-term fixes. “What they need is a proper overhaul of the group’s engine, not just a 12-month service,” he said.
Asda has struggled to recover since the abrupt departure of former CEO Roger Burnley in August 2021. Leighton, who rejoined the company earlier this year, has acknowledged that it could take up to five years to turn the business around.
The retailer continues its search for a permanent CEO, after a previous recruitment effort was unsuccessful.
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