Supermarket company Supervalu is eliminating 1,100 positions nationwide, or about 3% of its workforce, as it whittles down its store network.
The move, announced Tuesday, comes just days after Supervalu finalized the $100-million sale of five of its grocery chains -- Albertsons, Acme, Jewel-Osco, Shaw's and Star Market -- to an investor group led by Cerberus Capital Management.
Supervalu's remaining businesses include 1,331 Save-A-Lot discount groceries, 1,950 stores serviced by its wholesale distribution business and 191 regional groceries in the Cub, Farm Fresh, Shoppers, Shop 'n Save and Hornbacher's chains.
The looming headcount reduction "affects nearly all company offices and crosses most departments," said Minneapolis-based Supervalu. The cuts will come from among the company's 35,000 employees and from open positions that will no longer be filled.
For the most part, store-level workers and Save-A-Lot employees will be spared. Elimination dates will vary, the company said.
"The decision to reduce our workforce, although difficult because of the impacts to our people, is the necessary next step in the rebuilding of our business," said Supervalu Chief Executive Sam Duncan in a statement.
In midday trading in New York, Supervalu shares were up about 1.4%, or 7 cents to $5.12 a share.