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The Chicago Tribune reports that Safeway’s Dominick’s division has laid off 500 employees in a “belt tightening move” required because “staffing needs changed.”

Seventy-five percent of the chain’s stores will lose employees because of the layoffs; one store is slated to be closed after the first of the year.

The layoffs come just weeks after the company found a temporary solution to a labor problem, extending a contract it had with its United Food and Commercial Workers (UFCW) employees and agreeing to try and sell the chain.

While Dominick’s is on the block, no potential buyers have been announced by the company; it is not commenting on whether there are additional layoffs planned.
KC's View:
Well, Merry Christmas! Wonder if those UFCW members are reconsidering how they voted on the labor agreement?

From Safeway’s point of view, we’d have to guess that it is trying to get the division into shape for a sale that will bring it the most possible money, though it seems unlikely that it’ll make back the $1.8 billion it used to buy Dominick’s.

It’s just a shame that there are some 500 families that aren’t going to be having a very merry Christmas.