Southeastern Grocers has laid off multiple employees, joining several other U.S. grocery chains that have laid off employees this year.
The Jacksonville, Florida, U.S.A.-based company, is operated by a consortium of private investors. Aldi sold off Southeastern Grocers and its Winn-Dixie and Harveys in February, and the new management said on 4 April that it laid off multiple employees as a part of a restructuring.
“As our business evolves and we look to the future, we have made the difficult but necessary decision to restructure our Store Support Center in Jacksonville and our Field Support teams across the Southeast,” a spokesperson told News4JAX.
SEG declined to say how many employees were laid off, citing that it is a “private company.”
“Taking action now is the most prudent thing to do for the long-term health of the business, as we know that we will progressively operate a smaller fleet of stores following previously agreed conversions through 2027,” the spokesperson said. "Aligning our structure with the direction of our business is essential to strengthening our operations, ensuring we can continue to serve our customers, support our stores and position our company for long-term success.”
The SEG layoffs are just the latest casualty in the grocery sector, which face significant food and non-food price hikes from new U.S. tariffs imposed on several countries, in addition to ongoing inflation and economic challenges.
Boise, Idaho, U.S.A.-based Albertsons Companies laid off nearly 400 corporate and division staff members in January following its failed merger with Cincinnati, Ohio, U.S.A.-based Kroger. Then Kroger laid off around 200 employees in February. Other grocery chains have followed suit, including San Bernadino, California, U.S.A.-based Stater Bros., which laid off 63 employees in March due to inflation.
"In the last four years, we've seen significant inflation, more than I've ever seen in my career,” Stater Bros. CEO and Chairman of the Board Pete Van Helden said in a recorded statement, per KCAL News, citing 30-percent higher prices compared to four years ago. Customers are buying less and are shopping at lower-priced, nonunion stores, Van Helden said.
As layoffs continue to hit the U.S. grocery industry, Albertsons, Kroger, and C&S Wholesale Grocers are also embroiled in multiple lawsuits after the failed Albertsons-Kroger merger.
C&S sued Kroger in mid-March, alleging that the grocery chain owes it a USD 125 million (EUR 115 million) termination fee over the failed merger. C&S had agreed to acquire stores and assets Kroger and Albertsons had planned to divest to win regulatory approval for the merger.
However, in a new legal filing, Kroger said C&S is not entitled to the termination fee because it breached its contract with the grocer during the battle with regulators over the merger, per Grocery Dive. The filing claims that C&S disparaged the divestiture deal to regulators, secretly talked with Albertsons employees about the merger plan, failed to make disclosures to Kroger, and other failings.
Albertsons sued Kroger in December, alleging breach of contract over the failed merger.
