BRAMPTON, ON, Oct. 16, 2012 /CNW/ - 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
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.
"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," said Trius. "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
"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
About Loblaw Companies Limited
Loblaw Companies Limited, a subsidiary of George Weston Limited, is
Canada's largest food retailer and a leading provider of drugstore,
general merchandise and financial products and services. Loblaw is one
of the largest private sector employers in Canada. With more than 1,000
corporate and franchised stores from coast to coast, Loblaw and its
franchisees employ more than 135,000 full-time and part-time employees.
Through its portfolio of store formats, Loblaw is committed to
providing Canadians with a wide, growing and successful range of
products and services to meet the everyday household demands of
Canadian consumers. Loblaw is known for the quality, innovation and
value of its food offering. It offers Canada's strongest control
(private) label program, including the unique President's Choice®, no name® and Joe Fresh® brands. In addition, the Company makes available to consumers President's Choice Financial® services and offers the PC® points loyalty program.
This News Release for Loblaw Companies Limited contains forward-looking
statements about the Company's objectives, plans, goals, aspirations,
strategies, financial condition, results of operations, cash flows,
performance, prospects and opportunities. These forward-looking
statements are typically identified by words such as "anticipate",
"expect", "believe", "foresee", "could", "estimate", "goal", "intend",
"plan", "seek", "strive", "will", "may" and "should" and similar
expressions, as they relate to the Company and its management.
The forward-looking statements contained in this News Release are
subject to a number of risks and uncertainties that could cause actual
results or events to differ materially from current expectations,
including, but not limited to those referred to in the Company's
materials filed with the Canadian securities regulatory authorities
from time to time, including in the Forward Looking Statements and the
Enterprise Risks and Risk Management sections of the Company's second
quarter Management's Discussion and Analysis ("MD&A") and the MD&A
included in the Company's 2011 Annual Report - Financial Review. These
forward-looking statements are not historical facts but reflect the
Company's current expectations concerning future results and events.
They also reflect management's current assumptions regarding those
risks and uncertainties and their respective impact on the Company.
These risks and uncertainties are not an exhaustive list of the factors
that may affect the Company's forward-looking statements. Other risks
and uncertainties not presently known to the Company or that the
Company presently believes are not material could also cause actual
results or events to differ materially from those expressed in its
forward-looking statements. Additional risks and uncertainties are
discussed in the Company's materials filed with the Canadian securities
regulatory authorities from time to time. Readers are cautioned not to
place undue reliance on these forward-looking statements, which reflect
the Company's expectations only as of the date of this News Release.
The Company disclaims any intention or obligation to update or revise
these forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by law.