Sobeys, the country’s second-largest grocery chain next to Loblaw Cos. Ltd., said the office job cuts are part of its efforts to restructure into a leaner, national organization. “This will allow us to be more efficient in many ways and to be more agile as we pursue new opportunities to compete and win the loyalty of Canadians,” Michael Medline, CEO of Sobeys and its parent company, Empire Co. Ltd., said in a statement. As the grocer faces competition from the likes of Amazon and higher costs from rising minimum wages, it also appears to face continued challenges from its acquisition of Safeway Canada, four and a half years after announcing the deal. Douglas O’Halloran, president of the union representing 6,500 Safeway workers in Alberta, said the chain has struggled to position its stores to fend off competition and maintain customer loyalty. O’Halloran said the staffing cuts, which will leave 190 Calgary employees out of work, came as a shock. He said his members are worried about their own livelihoods as they prepare to negotiate a new collective agreement with Sobeys after the latest contract expired in March. “We’re sort of praying that Sobeys will figure out their direction and what they want to do in Alberta, and make Safeway a viable company again,” he said. Sobeys suffered major growing pains years after its $5.8-billion takeover of Safeway that led to logistical problems, systems integration issues, staff unease and customer complaints about empty shelves, according to the Financial Post. Mary Moran, chief executive of Calgary Economic Development, said news of 190 layoffs in a city still clawing its way out of recession is disappointing, but she noted the city has added nearly 24,000 jobs in the past year.
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