Shoppers Drug Mart began cutting jobs Monday in order to control costs, according to a confidential employee memo obtained by the Star.“Today is a very difficult day. We have started to inform select office colleagues that they will be leaving the business, with many of their positions eliminated immediately,” according to a letter sent out this morning by Sarah Davis, president, Loblaw Companies Ltd.“In the coming days, we will say goodbye to team members at all levels from our various store-support offices, including various executives.“These decisions are difficult but necessary. Our business is at an inflection point, with growing pressures – from new costs and new competition – and with many opportunities to grow and evolve. As always, we continue to focus on our future.”Loblaw Companies Ltd. announced in July 2013 that it had acquired Shoppers Drug Mart in a $12.4 billion deal.Loblaw chair and chief executive officer Galen Weston told analysts during a quarterly earnings call in July that the increase in minimum wage to $15 an hour in Ontario and Alberta was going to increase the company’s labour expenses by about $190 million next year. The internal memo goes on to say that the company is committed to cost reductions and running the business efficiently.“We have also been making major investments in new and growing areas like omni-channel, loyalty, healthcare, financial services and more.”“Our focus and investments in these areas will create hundreds of near-term jobs, and we expect to be a considerable net-job-creator this year. However, to invest meaningfully in these areas means saving meaningfully in others. That is why we are eliminating select roles.”The memo does not say how many jobs are being eliminated.
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