Asda is to consult staff on changes to its business that could result in 2,500 job losses next year - when the UK leaves the EU.

The chain, which is currently planning on merging with Sainsbury's, is the latest major supermarket to announce a shake-up of the way it works aimed at saving costs.

Asda said: "In a competitive retail market, where customers rightly expect great value and ease of service, we must always look at how we can work more quickly and efficiently for them - and inevitably, that means we need to consider changing the roles we need our colleagues to do or the hours needed in particular parts of our stores.

"We believe the proposed changes we are consulting on would allow us to do a better job for our customers.

"We also recognise that discussions about potential change aren't easy.


"If the decision is taken to implement the proposed changes we would work with our colleagues to look at the potential impact of these proposals on them."

Areas of work affected by any changes include petrol, bakery and back office functions while hours of work are also understood to be up for discussion.

While Asda did not confirm its plans would result in 2,500 job losses it did not deny the figure.

Image: Asda's bakery staff are understood to be facing the prospect of fewer working hours

Other members of the so-called "big four", including Tesco and Morrisons, have already carried out similar exercises.

Asda hopes its planned £12bn tie-up with Sainsbury's - currently the subject of a competition probe - will bring down the cost of their combined offering through lower wholesale costs.

The pair insist they have no plans to cut stores and jobs but MPs have questioned the merits of their merger.

The Competition and Markets Authority, which is investigating the tie-up, said last month there was a substantial risk that business overlap risked harming competition in 463 areas.

If the regulator allowed the deal without action, the combined Asda and Sainsbury's brands would have a slightly bigger market share than current leader Tesco.

GMB union national officer, Gary Carter, said of Asda's announcement: "These proposed redundancies are a hammer blow to Asda workers.

"The timing of this announcement, in the run-up to Christmas, is doubly appalling.

"Asda is performing well and is highly profitable because of the hard work of our members, who are the backbone of the company. GMB will fight tooth and nail for every single job.

"These cuts make no sense whatsoever. Slashing our members' jobs would hurt the service Asda customers receive.

"With all the speculation surrounding the proposed Sainsbury's merger and potential sell-off of stores, this news will not put anyone's mind at rest."