Having sold off its Albertsons, Jewel, Acme, and Shaws/Star Markets chains, as well as its SAV-ON and OSCO in-store pharmacy businesses to a Cerberus-led investor group earlier this month, slimmer grocer Supervalu finds itself less in need of a large back office than it once did. Accordingly, the company announced plans Tuesday to lay off approximately 1,100 employees at its corporate HQ and store support centers.

In a statement, Supervalue Chief Executive Officer Sam Duncan called the layoffs decision “difficult,” but said it was necessary to begin “the rebuilding of our business” at its new smaller scale. As Duncan explained, a smaller Supervalu has “significantly fewer corporate and store support roles and functions” to fulfill, “making it important that the company restructure its operations and expenses accordingly.”

Frontline store employees, Duncan clarified, will be largely unaffected by the announcement.

Supervalu noted that employees who are laid off “will be offered severance and outplacement services based on SUPERVALU‘s eligibility guidelines.” The company did not provide guidance on how much the downsizings might cost, or how they will affect short-term (or long-term) earnings. Shareholders, however, seem optimistic. Supervalu shares are up 1.6% in early trading, hovering around $5.13 per share.

The article Supervalu Laying Off 1,100 Workers originally appeared on Fool.com.

Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of Supervalu. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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