Document text
Kroger Co. layoffs may filter down to Fred Meyer From wire and staff reports Kroger Co. of Cincinnati, Ohio, announced a 34 percent decline in third-quarter revenues Tuesday and said it would shed 1,500 primarily managerial and clerical positions over the next year. The supermarket chain owns Fred Meyer, which has stores in north and south Medford as well as Grants Pass. The local impact of job cuts beginning in January won�t be known for some time. The company issued a weak outlook for the fourth quarter, citing softer-than-expected sales. The company, which has 312,000 employees worldwide, expects to incur a pretax charge of $85 million to $100 million for severance and other costs related to the job cuts and consolidation, with most of the charge coming in the fourth quarter. "It�s too early to say what the impact will be on each of the individual divisions," said spokesman Gary Rhodes. "Overall, it�s important to remember that the 1,500 positions represent less than one-half of 1 percent of our entire work force." Kroger officials said the company will reduce administrative and operating costs by more than $500 million during the next two years, and it expects to achieve most of those savings in the coming year. Some employees may be able to transfer to other positions within the company, Kroger representatives said. The company plans to centralize additional merchandising and procurement functions in the Cincinnati area, a move that will result in an increase of 75 to 100 positions in the area. Mail Tribune Home | Ottaway Newspapers, Inc. | Dow Jones & Co., Inc. | Privacy | Contact Us Copyright � 2001 Mail Tribune, Inc.