Food distributor Performance Food Group (PFG) announced it will cut 98 jobs at its Henrico, Va., procurement business as a result of the company outsourcing its foodservice-purchasing functions to UniPro Foodservice of Atlanta.
Affective April 17, the workforce reductions will affect employees with Progressive Group Alliance, PFG's independent purchasing organization.
Affected employees will receive severance and outplacement services.
PFG executives said the deal with UniPro will give the company a greater breadth of supplier relationships and more purchasing leverage.
Performance Food Group distributes food and foodservice products to restaurants, hotels and other institutions. The company last May was acquired for USD 1.3 billion by private equity farms The Blackstone Group and Wellspring Capital Management.
UniPro Foodservice is comprised of more than 300 shareholder companies; each distributor is independently owned, marketing the products and services provided by UniPro Foodservice.
