US retailer Albertsons lays off corporate staff after failed merger with Kroger

An Albertsons location in Lafayette, Louisiana, U.S.A.
An Albertsons location in Lafayette, Louisiana, U.S.A. | Photo courtesy of JHVEPhoto/Shutterstock
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Boise, Idaho, U.S.A.-based supermarket chain Albertsons Companies is laying off corporate and division staff members following its failed merger with Cincinnati, Ohio, U.S.A.-based Kroger, the company confirmed in a statement emailed to SeafoodSource.

While the company recently reported a sales increase in its third quarter results for its 2024 fiscal year and said it is in strong financial condition, the company “cannot stand still and must constantly recalibrate our company to compete in a rapidly changing market.”

“Our strategy … includes finding new sources of productivity to enable us to invest in growth,” Albertsons said. “After many years of productivity efforts across several parts of our company, we recently turned our attention to our general and administrative expenses and made the difficult decision to reduce the size of our corporate and division support workforce.”

An Albertsons spokesperson said the company would not disclose the number of employees affected and declined to comment on how the layoffs impact seafood-related positions. 

“No store-level associates were impacted where we serve our customers and communities,” the spokesperson said.

However, they did note that the reduction in corporate and division staff has occurred across the organization.

“This decision was not made lightly, and we appreciate the contributions of impacted associates. We are providing comprehensive support to all impacted associates, including severance packages with extended benefits, career support services, and additional resources during this transition,” Alberstons said.

Albertsons reported an increase in identical store sales of 2 percent and a significant jump in digital sales of 23 percent in its fiscal third quarter. Overall, net sales and other revenue increased 1.2 percent to nearly USD 18.8 billion (EUR 18.3 billion) for the quarter, which ended 30 November, rising from the USD 18.5 billion (EUR 18 million) it posted during the same period of 2023.

Kroger has not announced layoffs, but the retailer also reported higher identical store sales excluding fuel in its third quarter. At the same time, total company sales fell from USD 34 billion (EUR 33 billion) in the third quarter of 2023 to USD 33.6 billion (EUR 33 billion) in Q3 2024 due to the sale of Kroger Specialty Pharmacy and decreased fuel sales.


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