Report: Meijer To Cut About 3,000 Jobs
Retailer Says It Will Cut Jobs To Stay Efficient, Keep Prices Down
POSTED: Friday, January 23, 2004
UPDATED: 1:41 pm EST January 23,
2004
There may be more problems for grocery stores in Michigan after Local 4 learned that Meijer will cut nearly 3,000 jobs.
The Grand Rapids headquartered retailer plans to cut department manager positions in all 158 stores in five states, according to Business Editor Rod Meloni.Meijer stores typically have 40 to 42 departments, each with their own manager. Beginning at 6 a.m. Friday, store directors reportedly started telling about half of those managers that they would lose their jobs.An efficiency consultant hired by the company last year advised the retailer that one manager could handle three departments. Meijer cut about 350 administrative jobs back in September with advice from the same consultant.Overall, 15 to 20 managers per store will lose their job, according to the station's reports.Customers appeared upset when Local 4 told them about the cuts, but they were not surprised."The company is going to do what they want to do. You can't stop them," said Henry Kozlowski, a Meijer shopper.The company will reportedly offer the department managers a choice -- accept a lower position working on the floor, or take a severance package.Meijer says it needs to make the cuts to stay efficient and keep prices down.But shoppers like Lena Kocis disagree."Sometimes you can't get help … because they don't have enough help," said Kocis.Local 4 learned that Meijer had record-breaking sales this holiday season, but the retailer believes that it's best to make cuts while in a position of strength, as opposed to a retailer like Farmer Jack, who has been forced to close some of its stores because of financial troubles, the station reported.Meijer said it plans to open another five stores this year, and several more in the future, which will create thousands of new jobs, Local 4 reported.The company plans to make an official announcement about the department manager cuts on Saturday morning.Meijer employs a total of about 75,000 people.
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Customers React To Meijer Job CutsCopyright 2005 by ClickOnDetroit.com.
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