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

Lacombe resident recalls growing up during Second World War in Britain

Sylvia Gillespie will be speaking at the LMC on Thursday

Lacombe’s Cow Patti Theatre donates over $27,000 to local charities

Cow Patti has raised over $500,000 since 1997

Blackfalds RCMP seeking information on activities of stolen Fountain Tire Truck

Blackfalds RCMP recovered truck following earlier collision and car-jacking

MNP Canada Games Torch Relay coming to Lacombe

Torchbearers will carry the torch on a 4.64 km loop around Cranna Lake

Blackfalds RCMP on scene of school bus collision and car jacking

RCMP are looking for a silver 2012 Mitsubishi Outlander with Alberta license plate BNR655

2-for-1: Total lunar eclipse comes with supermoon bonus

On Sunday night, the moon, Earth and sun lined up to create the eclipse, which was visible throughout North and South America

Cannabis sales up 25% in November as overall retail sales fall 0.9%

Cannabis store sales totalled $54 million in the first full month of legal recreational pot sales

Red Deer RCMP arrest eight in stolen vehicle operation

During the project, six stolen vehicles were located and recovered

$20K pay gap between women, men in Canadian tech jobs

The report defines tech workers as people either producing or making extensive use of technology, regardless of industry

Catholic student says he didn’t disrespect Native American

Many saw the white teenagers, who had travelled to Washington for an anti-abortion rally, appearing to mock the Native Americans

Top Canadian athletes inducted into the Canada Games Hall of Honour

Athletes doing incredible things for communities are inducted into Hall of Honour, says Games CEO

New Canada Food Guide nixes portion sizes, promotes plant-based proteins

Guide no longer lists milk and dairy products as a distinct food group

Red Deer RCMP arrest man after truck collides with six vehicles

No one was injured and the male driver was restrained by a nearby resident until police arrived

Most Read