Loblaw Announces Job Cuts
Loblaw says it's cutting about 700 jobs, mostly management and administrative positions at its Toronto-area head office in a move that it says will help the grocery retailer reduce costs and become more efficient.
The company, which operates stores under various banners such as Loblaws, Zehrs, Real Canadian Super Store, has about 135,000 full-time and part-time employees.
It operates in an intensely competitive market against other Canadian grocery chains, such as Sobeys and Metro, as well as other retailers that offer food as part of their lineup, including Walmart.
"We're managing costs where it makes sense by reducing administrative expense,'' Loblaw president Vicente Trius said in a statement.
"We will continue to invest in driving the business forward by devoting more resources to enhance the customer proposition.''
Loblaw says the job notices will begin going out immediately and the cuts should be complete within three weeks.
It says the move will result in a one-time expense of $60-million, to be recorded in the fourth quarter of its financial year.
(The Canadian Press)