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As part of its ongoing restructuring efforts, Salisbury, N.C.-based Delhaize America has revealed plans to lay off employees. All eliminated positions will be above store manager level, CEO Roland Smith said in an internal e-mail sent to employees this week.
“Delhaize America has been focused on implementing a new organizational structure that enables the company to operate more effectively and efficiently,” Christy Phillips-Brown, director, external communications & community relations, told Progressive Grocer. “In support of this continued work, the company has made a number of organizational changes across Delhaize America, which will be communicated to associates this week. These decisions will result in nearly 500 fewer positions, including the elimination of 150 open positions. These decisions were carefully considered and made with the ultimate goal of serving our customers, growing our business and creating shareholder value.”
Out of respect for affected associates, Phillips-Brown declined to offer specifics regarding what positions will be eliminated and when the job cuts would take effect. She noted that the company’s new organizational structure was on track to be completed by the middle of this month, and that the layoffs were part of the process. With the completion of the reorganization, Phillips-Brown said that no additional actions were planned at the present time.
Delhaize America, a division of Brussels, Belgium-based retail conglomerate Delhaize Group, operates several grocery chains under the Food Lion, Bottom Dollar Food, Harveys, Hannaford Supermarkets, Reid’s and Sweetbay Supermarket banners. The company has a total of about 100,000 employees, and about 80 percent of Delhaize America officers are located in Salisbury.
In January, Delhaize America cut 25 percent of its top leadership positions and debuted an organization structure consisting of 50 officers, and said it would shutter eight underperforming Food Lion stores, as well as 33 Sweetbay locations.
Last year, Food Lion replaced Cathy Green Burns with Beth Newlands Campbell as president, closed 113 underperforming stores, and exited Florida.
In his memo to employees, Smith said he would “provide much greater detail about our new organizational structure and dates for upcoming town hall-style meetings.”
Delhaize America began its cost-cutting efforts last summer, with plans to reinvest the resultant savings in its store base.