Loblaw To Eliminate 700 Head Office Jobs
News: Canada-based food retailer Loblaw Companies' will cut around 700 jobs, primarily at its head office in Brampton, Canada and in administrative operations, President Vicente Trius announced on October 16 2012. The move will enable Loblaw to streamline its operations and become a more efficient firm in the highly competitive Canadian grocery market. The job cuts will become effective October 16 and are expected to complete in the next three weeks. Subsequent to job reductions, Loblaw expects to take a one-time estimated charge of US$60mn in Q4.
BMI View: In 2012, Loblaw will continue to strengthen its customer proposition, while the completion of its IT systems will remain a key priority. With a cash outlay of CAD70mn (US$71.2mn) to improve its information technology and supply chain and CAD40mn (US$40.7mn) to continue developing its 'customer proposition', the retailer has warned that FY2012 earnings will be impacted.