Supervalu Slashes 1,100 Jobs
In the wake of closing its five-banner selloff last week, Supervalu Inc. has announced plans to reduce its national workforce by an estimated 1,100 positions, including current positions and open jobs that will not be filled.
The final working dates for impacted employees vary, based on the needs of the business and the areas they support, the Minneapolis-based grocer reported.
“The decision to reduce our workforce, although difficult because of the impacts to our people, is the necessary next step in the rebuilding of our business,” said Sam Duncan, Supervalu president and CEO. “This move is an important part of our strategy to be more focused and efficient in our operations, including how we staff and support our three business units going forward.”
The announcement follows Supervalu’s recent sale of the Albertsons, Jewel, Acme, Shaw’s and Star Markets banners, and its Sav-On and Osco in-store pharmacies, to AB Acquisition LLC, in a $3.3 billion deal that closed March 21. Supervalu officials said the remaining organization will require significantly fewer corporate and store support roles and functions, making it necessary to restructure its operations and expenses.
These layoffs are expected to hit nearly all company offices and across most departments within the organization. In general, store-level employees and Save-A-Lot, the company’s successful St. Louis-based hard-discount retail chain, are not affected by this announcement. Employees whose positions are eliminated will be offered severance and outplacement services.
Last week’s sale will allow Supervalu to concentrate on three key business units consisting of Independent Business, Save-A-Lot and five regional retail banners (Cub, Farm Fresh, Shoppers, Shop ‘n Save and Hornbacher’s), expected to generate about $17 billion in annual sales.
Supervalu Inc. operates a network of 3,470 stores composed of 1,950 independent stores serviced primarily by the company’s food distribution business; 1,331 Save-A-Lot stores, of which 950 are operated by licensee owners; and 191 traditional retail grocery stores.