Reply #54: Winn-Dixie cutting 22,000 jobs [View All]

[dhinojosa]

http://money.cnn.com/2005/06/21/news/fortune500/winn_dixie/index.htm?cnn=yes

Winn-Dixie cutting 22,000 jobs
Supermarket retailer closing more than 300 stores as it seeks to bolster results.
June 21, 2005: 6:39 PM EDT

NEW YORK (CNN/Money) - Bankrupt grocery chain Winn-Dixie said Tuesday it would close about a third of its 913 stores and cut 22,000 jobs as part of a plan to restructure and emerge from bankruptcy.

The job cuts represent about 28 percent of Winn-Dixie's total work force. The cuts will affect stores as well as corporate offices, the company said in a statement.

The Jacksonville, Fla.-based supermarket chain said it's closing or selling 326 stores to focus on its most profitable markets.

"Creating a smaller, but more profitable store base will best position Winn-Dixie for long-term financial health and a successful future," Winn-Dixie CEO Peter Lynch said in a statement.

The company would have about $7.5 billion in annual revenue after disposing of the stores, down 25 percent from its current $10 billion, it said.

Winn-Dixie also plans to sell its dairy and pizza plants in Montgomery, Ala., and a beverage plant in Fitzgerald, Ga.


....

After the cuts, Winn-Dixie will still have stores in Florida, Alabama, Louisiana, Georgia, Mississippi and the Bahamas. It will no longer have outlets in Tennessee, North Carolina and South Carolina.

The company filed for Chapter 11 bankruptcy in February. In Chapter 11, a company is protected from creditors while it tries to reorganize and work out a plan to pay its debts.

http://money.cnn.com/2005/06/21/news/fortune500/winn_dixie/index.htm?cnn=yes