Loblaws lays off 500 office workers

Loblaw Companies has laid off 500 office workers in a cost-cutting drive

Loblaw Companies Ltd. is laying off 500 of its office workers, but the company says it still expects to create more jobs than it eliminates this year.

“Today is a very difficult day,” wrote president Sarah Davis in a memo to employees informing them about the job cuts.

Some of the laid off employees were told Monday and many of the positions will be eliminated immediately, she said.

The 500 jobs come from all levels of store-support offices, she said, including various executives.

“Our business is at an inflection point, with growing pressures — from new costs and new competition — and with many opportunities to grow and evolve,” Davis said, adding the company remains committed to reducing costs and running efficiently.

Loblaw (TSX:L) is making major investments in omni-channel, financial services and other growing areas and expects to create hundreds of near-term jobs and be a “considerable net-job-creator this year,” she said.

The decision comes after Metro Inc. (TSX:MRU) announced last week it would eliminate about 280 jobs starting in 2021 as the grocery-store chain modernizes and automates its distribution network. Metro said the choice is unrelated to its efforts to offset added costs from Ontario’s rising minimum wage.

Grocers and other retailers have expressed concerns over rising minimum wages in some Canadian provinces.

Loblaw spokesman Kevin Groh said the grocery industry faces a variety of pressures and the announced job cuts don’t relate to any single one, including rising minimum wage.

Loblaw employs about 200,000 people, he said.

Follow @AleksSagan on Twitter.

Aleksandra Sagan, The Canadian Press

Just Posted

Well-versed in national competition, trio heads to B.C. Summer Games

The three will be representing Zone 6 in boys field lacrosse

Beach Boys’ Brian Wilson set to hit Rock the Shores stage

Other acts include Bahamas, Allen Stone and Bedouin Soundclash

Canada men’s sevens team hoping for a top eight finish

Captain Harry Jones hopes to inspire rugby youth

France doubles up Croatia 4-2 to win World Cup

Played in Moscow Russia, latest Fifa World Cup marks the highest scoring final since 1966

Jacklin Road reopens

The section of road has been closed for five months

REPLAY: B.C.’s best video this week

In case you missed it, here’s a look at replay-worthy highlights from across the province this week

Former NHL goalie Ray Emery drowns in Lake Ontario

Police say the 35-year-old’s death appears to be a ‘case of misadventure’

Air quality statement warns of smoky air for Kamloops area

Environment ministry says area on north side of Thompson River may be affected by wildfire smoke

Pussy Riot claims on-field protest at World Cup final

Russian protest group claimed responsibility after four people ran onto field in police uniforms

Fans party on Montreal streets after French World Cup win

To city is home to nearly 57,000 French nationals

LOCAL FLAVOUR: South Island expecting a bumper berry crop

It’s berry time in Saanich. My raspberries are getting plump and ripe… Continue reading

B.C. VIEWS: Making private health care illegal again

Adrian Dix battles to maintain Cuba-style medical monopoly

Almost every part of Canada’s largest national park deteriorating: federal study

Drawing on decades of research — the report lists 50 pages of citations

Activists protest outside Kinder Morgan terminal in kayaks, canoes

Tsleil-Waututh elder Ta’ah Amy George led the water ceremony from a traditional Coast Salish canoe

Most Read