Asda is set to eliminate up to 1,000 warehouse positions as part of a major automation initiative that will replace human workers with robots. The supermarket giant is relocating its online operations for the George clothing brand from three sites in Northamptonshire, Staffordshire, and Tyne and Wear to a single DHL-operated warehouse in Derby.
Transfer of Workers
Under employment regulation laws, around 1,250 Asda employees are expected to transfer to DHL. However, following a consultation between the two companies and the GMB Union, it emerged that only 250 roles will be available at the new facility, leaving approximately 1,000 workers facing redundancy.
Automation Technology
The Derby warehouse will be equipped with 'Redline' robots, an automated system developed by Norwegian tech firm AutoStore. This technology uses robotics and advanced software to enhance efficiency and optimize floor space, allowing Asda to store more stock and process orders faster by automating product retrieval that was previously done manually.
GMB national officer Rachelle Wilkins expressed concern, stating: "A thousand people losing their jobs to be replaced by robots sounds like something from a dystopian sci-fi movie, but the warehouse industry is becoming increasingly automated and it's impossible to stand in the way of progress." She added that members fear this could be "the thin end of the wedge," potentially leading to thousands more job losses if Asda applies similar automation to its online food shopping network.
An Asda spokesperson commented: "As we announced in January, we are partnering with DHL to ensure we can continue to serve the growth in our George online business effectively. Any colleague who currently works in these roles will be transferred under TUPE regulations to DHL. Asda will work closely with DHL to support colleagues through this process including considering alternative employment opportunities across both businesses."
This marks the second implementation of 'Redline' robots at an Asda warehouse, following their use at the Magna Park site in Lutterworth. The move comes amid a broader trend of retail automation, with Asda recently announcing an expanded technology partnership with Ocado. From 2027, Ocado's software will manage much of Asda's online grocery operations, including order fulfilment, stock management, and home delivery planning.
Retail analysts note that the incentive to invest in automation has strengthened due to increases in National Insurance contributions and the National Living Wage introduced last April. A report by UK logistics firm Savills published in February found that over half of logistics firms plan to invest in AI and warehouse robotics within the next three years. Among these, one in five expect to need fewer staff, while one in three anticipate requiring more.
