YOUNGSTOWN, Ohio (WKBN) – The supermarket chain Giant Eagle is cutting 350 jobs at its corporate headquarters near Pittsburgh.
Some employees have already taken buyouts. Most were near retirement.
Giant Eagle has 34,000 employees in Ohio, Pennsylvania, West Virginia and Maryland.
CBS affiliate KDKA in Pittsburgh reports Giant Eagle says it’s trying to relocate many of the laid off employees.
None of the employees at Giant Eagle’s 230 supermarkets or 220 GetGos are affected, union officials told KDKA money editor Jon Delano.
Business professor Jeff Inman of the University of Pittsburgh Katz Business School told DeLano the move could be positive, or then again, it could be negative.
“On the one hand it could impact prices and result in lower prices in the store, which would be a good thing. On the other hand, if it results in lower service in the store, then that’s a real negative,” said Prof. Jeff Inman of the University of Pittsburgh Katz Business School.
Inman says Giant Eagle’s corporate cost-cutting may not be sufficient and closing unprofitable stores may be down the road.
“Stage one could be let’s try to save costs by cutting corporate. If that isn’t sufficient, then stage two would be looking at the under-performing stores.”
Giant Eagle operates primarily in Pennsylvania and Ohio with annual sales of over $9 billion.