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Canadian retailer Loblaw to slash 275 jobs

RBR Staff Writer Published 18 October 2013

Loblaw Companies, a Canada-based food retailer and owner of Joe Fresh brand, has announced that it will slash around 275 jobs as part of its restructuring program.

The layoffs are expected to occur in the coming few days and would mostly be at the head office.

Loblaw public relations director Melinda Metcalfe told Reuters that the layoffs would eliminate duplication, cut expenses and are part of Loblaw's efforts to operate more efficiently.

"We are streamlining our organization to strengthen our competitive position," Metcalfe added.

The retailer, which is buying Shoppers Drug Mart Corp for C$12.4bn ($11.98bn), presently has 134,000 full- and part-time employees working for the company and its franchised stores.

BMO Capital Markets' Peter Sklar said, "While the anticipated savings from the current restructuring actions are not material, we characterize this development as slightly positive."

Loblaw operates as a food distributor and provides drugstore, general merchandise, gas bars, and financial products and services in Canada. It offers a range of products and services to meet the everyday household demands through conventional, hard discount, and superstores.

The company operates more than 1,000 corporate and franchised stores and distribution centers across Canada.