Submitted by Fox First at Ten on November 2nd
NEW YORK (AP) - Supervalu will cut about 700 grocery store jobs at a subsidiary in New England, two weeks after it posted a loss for the second quarter and said it was considering selling the company.
The company said Friday that the job cuts will take place at 169 Shaw's and Star Market stores. Shaw's, with about 17,000 staffers, is one of the oldest supermarkets in the U.S., dating back to the 1860s.
Supervalu Inc., based in Eden Prairie, Minn., fired its CEO in July after closing stores and suspending its dividend.
The job cuts were announced on the same day that the Labor Department posted better-than-expected employment numbers, illustrating the complex landscape for American workers during a steady but painfully slow economic recovery.
Competition has grown exceedingly intense and grocers are being forced to cut prices to keep cash-strapped customers from switching to competitors as they look for bargains.
"We recognized an opportunity to align our workforce to more effectively serve the marketplace by scheduling team members more appropriately to serve customers at the times they shop," said Mike Stigers, the president of Shaw's. "These changes will help us to compete more effectively in a rapidly changing marketplace."
About 90 employees have been told about the loss of their positions and those notices will continue to roll out over the next several days, the company said.
Supervalu has about 14,000 employees overall.
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