Cub Foods Staff Cuts Among Latest Downsizing at Supervalu
Supervalu-owned Cub Foods laid off approximately 200 part-time workers in the Twin Cities—or about 3.6 percent of the grocer’s work force as part of its expense-cutting efforts due to increased competition.
According to published reports, officials at two local branches of the United Food and Commercial Workers (UFCW) Union confirmed this number.
The economy and strong competition has driven a decline in same-store sales at Supervalu for the past 11 consecutive quarters. In January, rumors of a weak third quarter drove its stock down 11.6 percent to $7.59, its lowest level since 1984.
Supervalu eliminated 300 corporate jobs earlier this year, and CEO Craig Herkert said during a recent earnings conference call that an additional 350 corporate jobs nationwide would be cut through both attrition and layoffs by the end of May.
Other cost-cutting efforts include the plan to close 20 unprofitable stores within the current fiscal year and offering corporate and office employees a chance to take unpaid time off through the end of the fiscal year, reports say.