Giant merger means layoffs

Giant Food in Landover said yesterday it will lay off or relocate local administrative employees as the region’s largest grocer merges its operations with sister company Stop & Shop.

The Landover offices have about 650 administrative employees — or nearly 3 percent of Giant’s total work force. Giant officials will not know how many jobs will be affected until mid-May or early summer, spokesman Barry Scher said.

The company said administrative functions such as human resources, merchandising, purchasing, information technology and accounting will be combined with Stop & Shop’s operations to reduce administrative costs and allow greater investment in the stores.

Troubled Dutch food retailer Royal Ahold NV, the parent of Giant and Stop & Shop, is combining the two grocery chains in an effort to restore its financial stability after it was engulfed in an accounting scandal that threatened to bankrupt the company.

Giant officials said they are working to find other jobs throughout the combined organization for employees and have begun offering new positions with Stop & Shop’s operation in Quincy, Mass.

For those laid off, Giant said it will provide severance benefits and outplacement assistance.

The changes at the grocery chain, which will continue to be called Giant, will not affect managers and employees at the stores. Giant operates 199 supermarkets in the District, Virginia, Maryland, Delaware and New Jersey and has 26,000 employees.

“For customers, the good news is that your Giant will remain your Giant —with the same name and people running the stores and the same strong commitment to the community,” said Dick Baird, Giant president and chief executive officer, who is retiring in July.

Stop & Shop President and Chief Executive Officer Marc Smith was named head of the combined company in February. Bill Holmes, former Stop & Shop executive vice president of sales and operations, has been named executive vice president and general manager of Giant.