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SAFEWAY ANNOUNCES RESTRUCTURE OF ADMINISTRATIVE OFFICE

 OAKLAND, Calif., March 2 /PRNewswire/ -- Safeway (NYSE: SWY) reported today that, in accordance with its previously announced restructuring, it had eliminated approximately 250 of its 1,100 full- time jobs in its administrative offices in Oakland, San Leandro and Walnut Creek.
 Of the company positions eliminated, over half were either open positions resulting from the hiring freeze initiated last year, or were positions made available by employees selecting voluntary separation packages offered by the company. Approximately 40 of the eliminated positions were held by outside contractors.
 Each employee who has volunteered or whose position has been eliminated will receive severance allowances and extended group health care benefits.
 There also will be outplacement counseling for all affected employees. Safeway will open a career center in Walnut Creek to provide assistance to these employees. The career center is expected to be open at least 3 months.
 "Because of the competitive environment, we need to fundamentally lower our cost of doing business," said President Steve Burd. "Accordingly, we have taken this painful but necessary step of reducing our administrative office expenses."
 Burd added that this will not affect Safeway store employees. "We are committed to serving our customers well while having a much leaner administrative staff."
 Safeway has employed Drake, Beam and Morin, the country's largest outplacement firm, to support the outplacement effort. Drake-Beam is widely respected for its programs to help people whose jobs are affected by corporate downsizing.
 Safeway operates more than 1,100 retail food stores in the United States and Canada. The company's common stock is traded on the New York Stock Exchange under the symbol SWY.
 -0- 3/2/93
 /CONTACT: media, Brian Dowling, 510-891-3267, or analysts, Melissa Plaisance, 510-891-3136, both of Safeway/
 (SWY)


CO: Safeway Inc. ST: California IN: REA SU: PER

SG-CK -- SF013 -- 2170 03/02/93 17:18 EST
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Publication:PR Newswire
Date:Mar 2, 1993
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