Minneapolis-based Supervalu plans to trim 800 jobs throughout the company, the majority of which will take place by the end of the company's fiscal year Feb. 25. The reductions include both current positions and open jobs that won't be filled.
"These reductions are necessary to help further strengthen and accelerate Supervalu's business turnaround in a very competitive marketplace," Supervalu CEO Craig Herkert said in a statement. "While the announcement of a workforce reduction is difficult news to share, due to its direct impact on our associates, these changes will allow us to better connect with customers and put more authority in the hands of people who interact more closely with our customers."
Last month, Supervalu reported a dismal third quarter, posting a $202 million loss compared to a profit of $109 million in the year-ago period. The grocer also cut its full-year outlook based on the poor performance.
At the time, Mr. Herkert said that the company had "invested heavily in promotional activities that proved to be less than effective." He added that the company's "performance is still not close to my expectations and we continue to take action to change the trajectory of our business."
Supervalu stock was essentially unchanged after the layoff news, trading at $6.93 midmorning, but has been circling its 52-week low of $6.26 ever since last month's earnings report.
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