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CARTERET, N.J. - Pathmark Stores here said yesterday it was cutting 50 jobs at its corporate headquarters to save money, The Star-Ledger newspaper reported today. Pathmark has also offered voluntary buyouts and early retirements to more than 1,300 of its highest-paid union employees, although it doesn't expect all of them to accept.
During a conference call with investors and analysts, C.E.O. Eileen Scott said the company probably will have a one-time charge of $2.5 million for the union worker buyouts, and about $3.2 million related to the administrative reductions. She said Pathmark should save more than $3 million a year once the buyouts are complete. The company also hopes to save about $3.5 million a year in administrative costs from those cuts.
Pathmark employs about 26,000 people, 90 percent of which are union members.