Loblaw Companies Limited announced today the plans to eliminate 700 positions from its head office and administrative operations. Made in an effort to become a more efficient company, the job cuts are expected to occur over the next three weeks.
"We're managing costs where it makes sense by reducing administrative expense. We will continue to invest in driving the business forward by devoting more resources to enhance the customer proposition," said Vicente Trius, president, Loblaw Companies Limited.
The reduction of these positions will reduce operational costs and is a part of the commitment of investing in value, assortment and service that Loblaw has made to its customers.
"To those colleagues who are leaving us we thank you for your contribution to the business and we are committed to treating you fairly and with respect. This change was made as part of a strategic plan to make Loblaw stronger as we evolve to address changing customer needs and ensure we have the flexibility to adjust to the demands of the marketplace."
As a result of these reductions, Loblaw expects to take a one-time estimated $60 million charge in Q4 which reflects the costs anticipated from carrying out its reductions.
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"Loblaw is proud to be one of Canada's largest private employers supporting local economies from coast to coast," said Trius. "In the past twelve months we have opened 14 new stores where we added more than 2,000 new jobs, making a positive contribution to the communities we serve.