Supermarket retailer Safeway is planning changes to its Northern California operations, including the closure of a bakery manufacturing facility in Richmond. The move comes as the grocery chain’s parent company, Albertsons, reviews its business and cost structure.
Economic Challenges
According to a Worker Adjustment and Retraining Notification (WARN) filing, Safeway will permanently close its bakery manufacturing facility in Richmond, California, that will result in the loss of 92 jobs on Dec. 30, according to a Worker Adjustment and Retraining Notification (WARN) notice filing earlier this week on Oct. 20, 2026.
The bread factory has been in production in the Bay Area and supplied hundreds of Safeway stores in the Northern California area since 1965.
The announcement of the closure of the bread plant comes as Albertsons, Safeway’s parent company, said in its latest earnings report that operating margins have been squeezed due to recent economic conditions which continue to put increased pressure on grocery stores across the board, forcing the company to take back its financial forecasts.
“Although second quarter performance was consistent with the Company’s expectations reflected in its previously revised outlook, the Company is no longer providing a fiscal 2026 outlook and will not provide an updated outlook until the comprehensive business review is completed during its fourth quarter,” the earnings report stated.
Albertsons CEO Susan Morris announced plans for a 12-to-18-month cost reduction strategy that includes “aggressive action” (layoffs and restructuring), reorganizing its underperforming real estate and closing facilities like the Richmond plant, which are older and less cost-effective, to help navigate these conditions.
“There is significant potential in our business, but our performance has not reflected that potential. Our responsibility now is to close that gap and to close it fast. That means simplifying our organization, improving decision-making and execution, allocating capital with further discipline, and delivering more consistently for customers. Most of all, it means tackling even harder a cost structure that we can no longer afford. We must reduce our cost of doing business more aggressively to better serve our customers and shareholders,” Morris said.
Who is At Risk and Where to Seek Assistance
Neither Safeway nor Albertsons have disclosed the exact number of employees that will be out of jobs. A limited number of affected employees would have the opportunity to transfer or relocate to other positions within its network. The company has not specified how many employees may be offered alternative roles.
The Richmond plant closure follows Safeway’s announcement that it will close its supermarket on Bollinger Road in San Jose, according to SFGate.
California’s Employment Development Department offers Rapid Response services to help workers affected by qualifying layoffs and closures. Services may include career counseling, job-search assistance, and workforce training.
