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Loblaw lays off 500 office workers in effort to cut costs

A Loblaws store is seen Monday, March 9, 2015 in Montreal. THE CANADIAN PRESS/Ryan Remiorz

VANCOUVER – Loblaw Companies Ltd. (TSX:L) says it is laying off 500 workers from its office operations.

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President Sarah Davis wrote in a memo to employees that some of the employees were informed Monday and many of the positions will be eliminated immediately.

She said the business faces growing pressures from both new costs and competition, and remains committed to reducing costs and running efficiently.

READ MORE: Loblaw could offset higher costs from minimum wage hikes in Ont., Alta. with 0.4% price increase: CIBC report

Davis said Loblaw is making major investments in omni-channel, financial services and other growing areas and expects to create hundreds of near-term jobs.

Spokesman Kevin Groh said the job cuts will come from its offices around the country, including Calgary, Toronto, Winnipeg, Halifax and Montreal.

He said Loblaw employs about 200,000 people across Canada.

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