Stater Bros. Makes Historic Layoffs as Inflation and Tariffs Impact Costs

For the first time in its 89-year history, Stater Bros. Markets, a supermarket chain based in San Bernardino, has laid off workers. The company let go of 63 “courtesy clerks” across several Southern California locations, citing rising inflation and tariffs imposed under President Donald Trump.

The affected clerks were informed of the layoffs through a 10-minute video shown on February 17, just six days before their last day. In the video, CEO Peter Van Helden explained that the layoffs were part of a cost-cutting effort aimed at keeping prices affordable for customers. He discussed various ways the company was working to reduce costs, including using solar power to cut energy expenses and reducing labor costs.

Van Helden attributed the layoffs to the significant rise in inflation, which he described as "more than I’ve ever seen in my career," with retail prices increasing by 30% over the past four years. He warned that the company may have to continue cutting jobs to manage rising costs.

In response to the layoffs, more than 100 union members from the United Food and Commercial Workers (UFCW) gathered outside the Stater Bros. store in Costa Mesa on March 5 to protest. They called for the company to rehire the workers at other stores with available openings. The UFCW said the layoffs also affected other stores in Orange County and Inland Empire.

The union is currently in negotiations with Stater Bros. and other Southern California supermarkets, as labor contracts with several chains ended on March 2. UFCW Local 324, which represents over 50,000 workers in the area, is working to secure new contracts that balance fair wages for workers with affordable grocery prices for customers.

The clerks who were laid off typically earned around $16.50 per hour, helping with tasks like bagging groceries, loading purchases into cars, and keeping check-stands clean.

Stater Bros. spokesperson Charlotte Wall echoed Van Helden’s remarks, saying the layoffs were necessary to "hold the line on pricing" for their customers.

While inflation eased somewhat last summer, rising costs have become a concern in recent months. Van Helden pointed to the growing prices of goods, including a sharp increase in egg prices from $5.19 to $9.02 per dozen. He also noted that ongoing tariffs and the threat of more would likely lead to further price hikes.

Rival supermarket chains like Aldi, Walmart, and Target were also cited as competition, with Van Helden noting that non-union stores were contributing to the pressure.

Among those laid off was 18-year-old Hannah Che, a high school senior who started working at Stater Bros. a year ago. She expressed confusion and frustration after watching the CEO’s video. "I was a little confused because I learned in my government class that inflation was going down slightly," she said.

Zoe Shea, a 23-year-old college student, also voiced concerns about her financial situation. As an English major at Santiago Canyon College, she relied on her job to help cover her textbooks and gas for commuting.

The layoffs mark a turning point for Stater Bros., a company once known for its commitment to its workers. UFCW Local 324 President Andrea Zinder remarked that Stater Bros. used to be a company that treated employees like family, but now it seemed to be prioritizing profits over people.

This shift comes after the death of Jack Brown, the long-time CEO who ran Stater Bros. for 36 years. Brown was known for his dedication to keeping employees employed, even during tough times like the 2003-2004 grocery strike. His leadership style was focused on doing what was right for employees and customers alike.

Stater Bros. has been investing in store renovations since June 2023, including new departments and improved store layouts, as part of an ongoing brand refresh. However, these recent layoffs have raised questions about the company’s future direction and its treatment of workers during challenging economic times.