Asda is set to cut up to 1000 warehouse jobs as it accelerates automation across its George online clothing operation.

The supermarket is moving George’s online operations from three sites in Northamptonshire, Staffordshire and Tyne and Wear to a single Derby warehouse operated by DHL.

Around 1250 Asda employees are expected to transfer to DHL under TUPE regulations as part of the changes. However, ITV News reported that DHL told the GMB union only 250 roles would be needed at the new warehouse during a consultation meeting two weeks ago.

The Derby site is being fitted with Redline robots, an automated system developed by Norwegian warehouse technology firm AutoStore.

The technology automates the retrieval of products that would previously have been picked manually by warehouse workers. AutoStore says its system helps retailers store more stock in less space and process orders faster.

GMB national officer Rachelle Wilkins said: “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 were concerned the move could be “the thin end of the wedge”, warning that further automation across Asda’s online food shopping network could put thousands more jobs at risk.

Asda has already been using the Redline Robot system at its Magna Park warehouse in Lutterworth.

The move comes after the grocer last week expanded its technology partnership with Ocado. From 2027, Ocado’s software will be used to manage much of Asda’s online grocery operation, including order fulfilment, stock management and home delivery planning.

The deal does not include Ocado’s robotic warehouses, but underlines the growing role of automation and digital systems in retail operations as supermarkets look to improve productivity and offset higher labour costs.

Asda has been working to improve profitability after several years of losing market share to rivals including Aldi and Lidl. Executive chairman Allan Leighton returned to the supermarket in 2024 to lead its turnaround.

The UK Warehousing Association said around 760,000 people are employed in warehousing across the UK, a figure that rose sharply as online shopping expanded but has remained broadly stable in recent years.

A Savills survey of 382 retailers, manufacturers and logistics firms, published in February, found more than half planned to invest in artificial intelligence, warehouse robotics and automation over the next three years.

One in five said they expected to need fewer staff, while one in three expected to need more.

An Asda spokesperson said: “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.”