Supervalu is cutting 115 jobs from its Boise office, as an agreement it had with former subsidiary Albertsons winds down.
Minnesota-based Supervalu told employees Thursday that 115 positions in the finance shared-services department will be eliminated, a Supervalu spokesman said.
The company has hired Cognizant, an information technology and business services company, to handle the work instead.
“We do still have a presence in Boise, and we plan to continue to have a presence in Boise,” spokesman Jeffrey Swanson said Friday.
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The company has 475 employees, including IT and finance workers, in its Boise offices on ParkCenter Boulevard.
Swanson said Cognizant will hire 54 people in Boise to work on the Supervalu contract. The switchover will take several months, with Cognizant hiring in the next month or two, he said.
That will “allow us the ability to scale up and scale down the work during the year as it ebbs and flows,” Swanson said.
The announcement comes as Albertsons — some of which was formerly part of Supervalu — moves on from the 2013 split from Supervalu. That action reunited, in one company, what remained of the Albertsons Inc. chain that broke up in 2006. Albertsons this year merged with California-based Safeway and plans to go public.
When the part of Albertsons that Supervalu owned was purchased by a group of private investors, the two companies put in place a transition-services agreement. That is scheduled to end soon. The outsourcing will help Supervalu adjust to that wind-down, Swanson said.
“As we look at why we’re doing this, it’s really aimed at ultimately better managing our workload and cost structure going forward,” he said. “It was ... hard because of the impact to employees, but ultimately we feel this is the right decision for the business.”
Swanson said the company will give severance packages to employees whose jobs are eliminated. He said in an email that Supervalu is “trying our best to address this news in as thoughtful and understanding a way as possible.”