Around 840 Asda staff may have their pay cut or face redundancy amid sweeping cost-cutting measures across the supermarket.
Under the new measures, set to come into effect during the new year, hundreds of section leaders could be removed from store management teams, the Guardian reported.
Thousands more staff will also be hit by a reduction in hours spent shelf stacking across 600 Asda stores.
The proposed cuts are reportedly aimed at regaining ground lost to discount grocers Aldi and Lidl, with the retailer reporting that roughly half of its smaller stores were making losses.
This will mark the latest in a string of job cuts at the grocer, which cut hundreds of jobs throughout August and September.
A report sent to staff read: “We need to continuously review our operating model. … being the cheapest of the big four is no longer a viable business model.
“We need to be able to look at ways to reduce our operating costs in order to close the price gap.
“We would explore redeployment opportunities, and only as a last resort, we would look at the possibility of redundancy with affected colleagues.”
Asda told the Guardian in a statement: “These proposed changes are about making sure we’re doing the best job for our customers in the most efficient way possible.
“Whilst these are only proposals, we know talking about change is unsettling which is why we’re working with our colleagues to get their views before any final decisions are made early next year.”