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Sobeys to cut 800 jobs across Canada

RBR Staff Writer Published 27 November 2017

Canadian food retailer Sobeys is planning to lay off 800 jobs as part of its latest reorganization plan.

The number is estimated to be 20% of its office staff. The move is part of its parent’s company’s commitment to save $500m in annual expenses by 2020, which was announced in March this year

Sobeys has confirmed to CBC News that about 150 jobs will be affected in Nova Scotia and includes 100 at its head office in Stellarton.

Other positions that will be affected include 19 in New Burnswick, 14 in Newfoundland and Labrador and three in P.E.I.

Sobeys CEO Michael Medline said: "The future success of Sobeys, and our continued service to over 900 communities across the country, depends on our steadfast commitment to transform our business." 

He continued saying: "The first phase of our plan to transform our business, which has been focused on resetting the foundation of Sobeys and creating a new organization structure, is now substantially complete.

"This will allow us to be more efficient in many ways and to be more agile as we pursue new opportunities to compete and win the loyalty of Canadians."

The company has been facing several issues after it acquired Safeway Canada four years ago. Sobeys acquired the company to improve its presence in Western Canada.

Sobeys achieved same-store sales growth in the first quarter of financial year 2018 and it was the first time in 18 months that the company reported a higher year-over-year sales at stores open at least a year.

Image: Sobeys location at Woodstock, New Brunswick. Photo: Courtesy of BoyoJonesJr/Wikipedia.org.