Supervalu to Cut 800 Jobs, Including 200 in MN
Eden Prairie-based Supervalu, Inc., on Tuesday announced plans to cut about 800 positions from its corporate and regional offices, including roughly 200 jobs in Minnesota.
Company spokesman Mike Siemienas told Twin Cities Business on Tuesday that Supervalu employs about 3,000 people in Minnesota at corporate and regional offices. He said that the cuts account for layoffs as well as open jobs that will not be filled.
The majority of cuts will take place by February 25, the end of the company's fiscal year, and the move affects all Supervalu offices and most company departments.
“In general, store-level associates are not affected by this announcement,” Supervalu said.
The cuts are part of an ongoing effort to reduce operating costs and ultimately provide more competitive pricing to Supervalu customers, the company said.
“These reductions are necessary to help further strengthen and accelerate Supervalu's business turnaround in a very competitive marketplace,” CEO and President Craig Herkert said in a statement. “While the announcement of a work force 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.”
Supervalu is among Minnesota's five largest public companies based on revenue. It currently serves customers across the United States through a network of approximately 4,300 stores. The company has about 135,000 employees.
For its most recent fiscal year, which ended in February 2011, the company reported $37.5 billion in sales, down 7.5 percent from the same period the prior year, and a $1.5 billion net loss.
For the third quarter, which ended December 3, the company reported revenue of $8.3 billion-down from $8.7 billion during the same period in 2011-and a net loss of $750 million, compared to a loss of $202 million the year before. The company said that its loss included an $800 million charge related to its turnaround efforts, including store closures and severance payments, although it didn't provide specifics about those cuts in its earnings announcement.Adjusted for those one-time costs, the company's third-quarter earnings totaled $50 million.
Last month, the company said that Chief Marketing Officer Julie Dexter Berg left the company and was replaced by internal successor Michael Moore.