Description: Loblaws has announced that roughly 500 administrative staff will be laid off in a cost-cutting move. Loblaws stated the cost cutting is to help cope with rising costs – perhaps such as an increase in the minimum wage. As well, the company cited increasing competitive forces as another reason they had to give this bad news to 500 of its workers.
Date: October 16, 2017
1) Wiley’s Financial Accounting: Tools for Business Decision Making discusses Loblaws in one of its feature stories. Can you find any subjects in this feature story that might show other areas where a managerial accountant could find cost savings for Loblaws?
2) Think for a moment about being a CFO in a large corporation. How would you break the news of layoffs to your staff?
3) What do you think may be some of the chief competitive forces Loblaws is referring to in the article?