Supervalu to Cut Up to 2,500 Albertsons Employees

The cuts will occur across all 247 Albertsons stores in California and Nevada; Supervalu said that stores in those states have experienced both a reduction in traffic and an overall decline in sales, and it had not adjusted its store-level operations accordingly.

Supervalu, Inc., on Wednesday announced plans to cut between 2,200 and 2,500 jobs at its Albertsons supermarkets in California and Nevada—or up to 13 percent of the chain’s store-level work force in those two states.

The cuts will occur across all 247 Albertsons stores in California and Nevada. Albertsons is the largest retail chain in Eden Prairie-based Supervalu’s family of grocery stores.

Supervalu said that Albertsons is “focused on simplifying its organization and reducing expenses to help reinvest in more customer-facing initiatives.”

The company also acknowledged that “Albertsons has not kept pace with the changing needs of its customers for a number of reasons.” Meanwhile, Albertsons’ southern California division—which comprises both California and Nevada—has experienced both a reduction in traffic and an overall decline in sales, but it had not adjusted its store-level operations accordingly, Supervalu said.

The company will begin implementing the cuts during the week of June 17, and they will wrap up by about July 1. Supervalu said the change will affect a “small number” of positions at any given Albertsons location.

“A decision of this nature is never easy, but it is the necessary step for us to take to help improve our business and accelerate our turnaround,” Dan Sanders, president of Albertsons’ southern California division, said in a statement. “Our goal is to more effectively serve the marketplace by scheduling associates more appropriately to serve customers at the times they shop.”

In recent months, Supervalu has been closing stores, cutting jobs, selling off some businesses, and lowering its debts in an effort to turn itself around. In February, the company announced plans to cut about 800 positions from its corporate and regional offices, including roughly 200 jobs in Minnesota. Supervalu said at the time that the cuts were part of an ongoing effort to reduce operating costs and ultimately provide more competitive pricing to Supervalu customers.

For the fiscal year that ended in February, Supervalu reported a net loss of $1 billion on net sales of $36.1 billion. Excluding one-time items, net income totaled $265 million, or $1.25 per share.

Supervalu—which owns Cub Foods—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 130,000 employees.