Loblaws lays off 500 office workers

Loblaw Companies has laid off 500 office workers in a cost-cutting drive

Loblaw Companies Ltd. is laying off 500 of its office workers, but the company says it still expects to create more jobs than it eliminates this year.

“Today is a very difficult day,” wrote president Sarah Davis in a memo to employees informing them about the job cuts.

Some of the laid off employees were told Monday and many of the positions will be eliminated immediately, she said.

The 500 jobs come from all levels of store-support offices, she said, including various executives.

“Our business is at an inflection point, with growing pressures — from new costs and new competition — and with many opportunities to grow and evolve,” Davis said, adding the company remains committed to reducing costs and running efficiently.

Loblaw (TSX:L) is making major investments in omni-channel, financial services and other growing areas and expects to create hundreds of near-term jobs and be a “considerable net-job-creator this year,” she said.

The decision comes after Metro Inc. (TSX:MRU) announced last week it would eliminate about 280 jobs starting in 2021 as the grocery-store chain modernizes and automates its distribution network. Metro said the choice is unrelated to its efforts to offset added costs from Ontario’s rising minimum wage.

Grocers and other retailers have expressed concerns over rising minimum wages in some Canadian provinces.

Loblaw spokesman Kevin Groh said the grocery industry faces a variety of pressures and the announced job cuts don’t relate to any single one, including rising minimum wage.

Loblaw employs about 200,000 people, he said.

Follow @AleksSagan on Twitter.

Aleksandra Sagan, The Canadian Press

Just Posted

Details of Mr. Big sting operation discussed in Castor-area triple homicides

Klaus confesses to arranging murders, says Frank pulled the trigger

Red Deer Royals see over 1,000 letters of support for funding

MP Blaine Calkins to make an appeal to Prime Minister Justin Trudeau

Man who stopped impaired school bus driver honoured

Red Deer’s Kurt Stenberg receives Lieutenant Governor of Alberta’s Award for Bravery

Missing Ontario man may be headed to Red Deer

Police are searching for Tyler Haney, who may be in the area to find work

WATCH: Lacombe voters eager to get to the polls

Lacombe voters are out today to decide who will represent their interests in the community

Dead boy’s father posts Facebook response after Appeal Court upholds conviction

David, Collet Stephan were found guilty in their son Ezekiel’s 2012 death from bacterial meningitis

Bank of Canada cautious of future rate hikes

The Bank of Canada remains cautious on future rate hikes due to low- inflation risk

London theatre received allegations against Kevin Spacey

The theatre said Thursday the 20 allegations deal with incidents between 1995 and 2013.

Three-car pile-up on Northstar Drive and 58th Street

No injuries reported at Thursday afternoon incident

Da Vinci’s Christ painting sells for record $450M

The painting, “Salvator Mundi,” Latin for “Savior of the World,” is one a few paintings by Leonardo known to exist

Loblaws closing 22 stores, launching home delivery ahead of ‘difficult year’

“We are excited about our future. But…we expect 2018 will be a difficult year,” said Galen G. Weston, Loblaw CEO.

Ban moves ahead in B.C. against same real estate agent for buyer and seller

New real estate consumer protection rules to take effect in March

Indigenous youth deaths preventable, B.C. coroner says

Trauma, mental illness, drugs and alcohol major factors

Most Read