Food Marketer Will Cut 2,000 Jobs Fleming Cos. Said It's Closing Its King Of Prussia Office. Its Phila. Distribution Center Isn't Affected.

ASSOCIATED PRESS Inquirer staff writer Susan Q. Stranahan contributed to this report
Posted: January 19, 1994

OKLAHOMA CITY — Food marketer Fleming Cos. yesterday said it would close five regional staff offices and cut employment by at least 2,000 as it works to improve performance.

The company said its Philadelphia distribution center, which has 400 to 500 employees, is not affected. But its King of Prussia office, which employs "a couple" of people, is among those to be closed, said Ron Frost, director of corporate communications.

Fleming is a wholesale grocery distributor for area Thriftway and Shop 'n Bag supermarkets. Stores will deal with the distribution center rather than regional offices, which may improve response times, Frost said.

Fleming first announced in December that it was reviewing its operations and business strategies.

Robert E. Stauth, president and chief executive officer, said in a written statement that the changes are "consistent with our strategy to improve company performance through development of larger, more productive distribution centers and by eliminating functions and operations, including our five regional offices, that do not add economic value."

Fleming said the changes would lower operating costs by $65 million a year and cut employment by 9 percent.

The company plans to set aside about $101 million from last year's fourth quarter to cover costs associated with the restructuring.

Net earnings for the quarter and year will be reduced by about $62 million, or $1.68 a share.

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