Supervalu to cut more than 1,000 jobs
March 27, 2013
by Eric Schroeder
MINNEAPOLIS — Supervalu Inc. said it plans to reduce its national workforce by an estimated 1,100 positions.
“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, president and chief executive officer. “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 March 26 announcement came five days after Supervalu said it sold Albertons, Jewel, Acme and Shaws/Star Markets, as well as the Sav-on and Osco in-store pharmacies, to AB Acquisition LLC, an affiliate of a Cerberus Capital Management LP-led investor consortium, in a stock deal valued at $3.3 billion. With the sale of the stores, Supervalu said it needs “significantly fewer corporate and store support roles and functions.” As a result, the company must restructure its operations and expenses accordingly, Supervalu said.
The job cuts will affect nearly all company offices and crosses most departments within the organization. In general, store level employees and Save-a-lot, the company’s hard-discount retail chain, are not affected by the reductions, Supervalu said.
Going forward, Supervalu said it aims to be “a more focused and efficient wholesale and retail operation, with three key business units consisting of Independent Business, Save-a-lot and five strong regional retail banners.”
The three business units are expected to generate more than $17 billion in revenues annually.