Struggling Eden Prairie-based grocery retailer Supervalu Inc. announced Friday that it is freezing wages for thousands of employees and cutting its 401K match, the Minneapolis-St. Paul Business Journal reported.
A Supervalu spokesman said the company needs to "take costs out of the business in order to fund our growth plans," and the only way to do that was to make changes to "compensation and benefits as they are the largest administrative expense."
The move will not affect many of Supervalu's store-level and warehouse-level employees, the Journal reported.
The changes are set to take place early next year for an indefinite period of time.
News of the wage freeze and the benefit cuts comes two weeks after the company announced that it was going to cut 700 grocery store jobs at its Shaw's and Star Market subsidiary stores in New England.
Supervalu posted a loss for a second-straight quarter last month.