Asda has announced that over 10,000 managers will not receive annual bonuses due to disappointing sales and market share declines, marking the company’s worst Christmas performance in a decade. This decision, coinciding with the upcoming financial results, is likely to worsen employee morale and push top talent to seek opportunities elsewhere. Allan Leighton, the newly reinstated executive chairman, faces the challenge of revitalizing the brand amidst significant sales declines. Critics of the bonus suspension suggest it might not effectively motivate employees at a critical time when many doubt the company's direction.
Asda has confirmed that more than 10,000 of its managers will not receive their annual bonuses this year, following a worrying slide in performance at the once-thriving supermarket chain.
Morale will be rock bottom. Even Allan [Leighton] won't be able to pick them up from this. This will mean some of the top talent looking elsewhere.
The bonus scheme's suspension, revealed shortly before Asda is due to publish last year's financial results, is expected to dampen morale among staff.
Critics argue that the removal of bonuses, while saving costs for a price-focused turnaround strategy, will do little to inspire confidence among employees at a time when only half of them say they believe in Asda's corporate direction.
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