Loblaw Companies Limited announced today that it is reorganizing 700 administrative and head office jobs as part of a long-term strategic plan.
The company, headquartered on President’s Choice Circle in Brampton, said that changes would begin today and be completed over a period of three weeks. As a result of the reductions, the company estimates it will incur a one-time only charge of $60 million in the fourth quarter of this year.
“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.
In a statement, Trius emphasized the company has opened 14 new stores and added more than 2,000 new jobs in the last 12 months.
As of noon today, the company’s stock was up $0.8 to $34.75, a gain of 2.57 per cent.
The company currently employs 1,700 people at its Brampton head office.
More on what this means to Brampton and Mississauga in tonight’s edition.