Supervalu Cuts Benefits, Freezes Pay
Continuing in its attempt to right its financial ship, Supervalu Inc. has frozen salaries and cut its corporate 401K match for many of its employees.
This is the latest move to address Supervalu’s need to “immediately take costs out of the business in order to fund our growth plans," Supervalu spokesman Michael Siemienas told the Minneapolis/St. Paul Business Journal, noting that pay and benefits “are the largest administrative expense.” Siemienas did not disclose the anticipated savings.
The changes will take effect in early 2013 with “plans to continue to evaluate them based on the company's business results,” Siemienas added.
Impacted by these cuts are Supervalu’s store support center employees, which include most of the staff at its Minneapolis headquarters and at various divisional store offices. Unaffected are store-level and warehouse-level employees covered by union contracts.
Earlier this month, Supervalu announced 700 job cuts at its New England-based Shaw’s division as part of the ongoing rebuilding efforts by the financially struggling retailer and wholesaler. Several suitors have emerged to acquire the company, either as a whole or in parts.