Price Chopper announced Wednesday that it has eliminated 80 administrative positions from its Schenectady headquarters and Rotterdam distribution facility over the past six months. Thirty-four employees were laid off Wednesday.
The supermarket chain described the eliminations as a restructuring of its administrative workforce, designed to “ensure the company’s long-term health and success,” according to a news release issued Wednesday evening.
Ten positions were added through the restructuring, 46 positions were eliminated through attrition over the last six months, and 34 employees were let go.
“This was a difficult, but necessary decision for us to make as we move forward in today’s challenging economy,” said Price Chopper President and CEO Jerry Golub in the release. “Continuing to focus our efforts on efficiency and innovation will help us to enhance our customers’ shopping experience while providing them with tangible value.”
The company attributed the layoffs to the rise in health care, fuel and other business costs, and said the restructuring was one of many steps being taken to decrease administrative expenses.
Employees were offered severance packages and outplacement services, and remain eligible to apply for other positions within the company.
Company spokeswoman Mona Golub said that Price Chopper still employs more than 700 people at its $33 million corporate headquarters on Nott Street.
“It’s not a question of saving money,” she said. “It’s a question of not spending money on things. We’re re-investing money or investing money in those things that will ensure we remain competitive in a very competitive industry across the six states we do business.”
Golub said the company, which employs more than 8,500 people in the Capital Region, is not considering any more layoffs at this time.
Last summer, Price Chopper cut its Fuel AdvantEdge gas program so that shoppers had to spend $100 at its stores instead of $50 to save 10 cents per gallon of gas. The money saved from the cuts would go toward lowering food prices, the company said.
In October 2012, it announced an ambitious, two-year campaign to expand and remodel 11 local stores, starting with the construction of a Latham prototype store that would feature a restaurant row with fresh, made-to-order food and a bevy of new amenities and offerings. The investment is expected to total $61 million.