Loblaw is a name that many of you are more than likely not familiar with when it comes down to it. So before we talk about the job cuts that are going to come in the near future lets begin by talking about how the company has chosen to describe itself, “Loblaw Companies Limited (Loblaw) is Canada’s largest food retailer and a leading provider of drugstore, general merchandise and financial products and services. Through our portfolio of store formats, we are committed to providing Canadians with a wide, growing and successful range of products and services to meet their everyday household demands. We are known for the quality, innovation and value of our food offering. We offer Canada’s strongest control label program, including the unique President’s Choice, no name and Joe Fresh brands. In addition, we provide customers with President’s Choice Financial services and offer the PC points loyalty program. “

Sadly the company is getting ready to cut back on about 700 jobs in the near future, as part of a plan to reduce its overall costs. The company put out a release about the job cuts that outlines the cuts in more detail, “As part of Loblaw Companies Limited’s (TSX:L) long-term strategic plan and its commitment to becoming a more efficient Company, to reducing costs and to investing in value, assortment and service for its customers, the Company today announced its plan to reduce a number of head office and administrative positions. Focused primarily on management and administrative positions, the plan is expected to affect approximately 700 jobs. Changes will take effect starting today and should be complete within three weeks. The Company expects to take a one-time estimated $60 million charge in the fourth quarter, reflecting the anticipated costs of the planned reductions.” As you can imagine the cuts to come are really going to be quite expensive in the short term for the company, but it is expected to make savings happen in the long term.

The company’s senior management expressed some hesitation about the job cuts  and regret for the worker who are going to be out of their jobs, “We’re managing costs where it makes sense by reducing administrative expense. We will continue to invest in driving the business forward by devoting more resources to enhance the customer proposition,” said Vicente Trius, president, Loblaw Companies Limited. Loblaw is proud to be one of Canada’s largest private employers supporting local economies from coast to coast. In the past twelve months we have opened 14 new stores where we added more than 2,000 new jobs, making a positive contribution to the communities we serve. To those colleagues who are leaving us we thank you for your contribution to the business and we are committed to treating you fairly and with respect. This change was made as part of a strategic plan to make Loblaw stronger as we evolve to address changing customer needs and ensure we have the flexibility to adjust to the demands of the marketplace.”