A century-old Texas grocery chain just dropped a bombshell on its Lubbock headquarters: 126 job cuts beginning this year. United Supermarkets, operating under the parent company Albertsons, is restructuring its operations through mid-2026 as it implements new technology systems.
The move affects roughly 25% of its corporate workforce and carries an estimated $6M–$9M salary impact for 2026. But the story runs deeper, and the first filing shows why.
Century-Old Grocer Shrinks Headquarters
United Supermarkets, headquartered in Lubbock since the 1950s, is eliminating 126 positions from its corporate office. The company traces its roots to 1916 and filed a WARN notice with the Texas Workforce Commission on November 17, 2025.
Layoffs start no sooner than January 19, 2026, and could run through July 2026, hitting a headquarters of about 510 staff. The stated reason is only the beginning.
The Real Driver Behind The Cuts
United Supermarkets, doing business as The United Family, says it is implementing new operating systems across its brands. It called this “a significant investment in our operating systems to ensure that United Supermarkets, Market Street, Amigos and Albertsons Market are equipped with the tools and resources needed to improve efficiencies and deliver the best-quality service”.
Timing matters because this follows Albertsons’s failed $24.6 billion Kroger merger.
The United Family’s Texas Footprint
The United Family operates 96–99 stores across 54 communities in West Texas, North Texas, and New Mexico. It employs about 15,000 people and runs 5 banners: United Supermarkets, Market Street, Amigos, United Express, and Albertsons Market.
Albertsons bought United in 2013 and largely left it independent, with Lubbock as the operational nerve center. That independence is now being tested.
The $9.8M Annual Salary Exposure
The 126 affected employees represent roughly 24.7% of the Lubbock headquarters workforce. Using an average corporate salary of $78,042, the total annual payroll tied to these positions is approximately $9.83M.
This figure excludes severance, benefits, payroll taxes, and potential legal costs. Even without additional costs, the restructuring’s local impact in Lubbock could be significant.
Which Roles Are Being Eliminated
The cuts target multiple headquarters functions. United is eliminating director roles, marketing jobs, and support desk positions, with reductions phased through July 2026 rather than happening at once.
United says affected employees have already been notified and it will seek alternative opportunities where possible. Still, a long rollout extends anxiety for teams left behind. The legal timeline is also raising eyebrows.
A WARN Act Probe Adds Pressure
Strauss Borrelli PLLC is investigating whether United Supermarkets complied with the federal Worker Adjustment and Retraining Notification WARN Act. WARN generally requires 60 days’ written notice for mass layoffs at employers with 100+ employees.
United filed a WARN notice on November 19, 2025, with layoffs starting January 19, 2026, a tight 61-day margin. Could that detail become costly?
Albertsons Pushes A $1.5B Cut Plan
Albertsons announced a 3-year plan starting in 2024 to cut $1.5 billion in costs. CEO Susan Morris said, “As we navigate a dynamic operating environment, it’s critical that we unlock the sustainable efficiencies to reinvest our strategic growth initiatives offset inflationary headwinds”.
Savings are aimed at digital growth, retail media, and tech modernization. Since the Kroger deal collapsed, Albertsons has cut about 800 jobs and closed nearly a dozen stores.
How The Kroger Deal Collapse Changed Everything
Kroger and Albertsons unveiled a $24.6 billion merger plan in October 2022. Federal courts blocked it in December 2024, with injunctions from a U.S. District Court in Oregon and King County Superior Court in Washington.
Kroger spent about $1 billion pursuing the deal. Both chains had avoided aggressive cuts during the long review, then quickly returned to cost controls after failure. That shift is now landing in Texas.
Lubbock Faces A Real Economic Jolt
Lubbock has 266,878 residents and a median household income of about $32,807. Unemployment was 3.4% in May 2025, up from 3.0% a year earlier.
Removing 126 corporate salaries, at around $78,042 each, hits local spending at restaurants, shops, and services. Grocery headquarters jobs also create multiplier effects, so the damage can spread beyond the office. The broader Texas labor picture adds another complication.
Texas Job Growth Starts Looking Uneven
Texas added 17,600 jobs in August 2025, modest for a state of its size. In Q1 2025, contracting establishments lost 507,323 jobs, while opening establishments added 119,071. Net private-sector employment declined by 3,816 in that quarter.
A Texas service sector survey showed retail sales contracting in December, with the sales index at -20.6. That backdrop makes displaced workers’ searches harder. What’s happening across the grocery industry too?
Retail Layoffs Are Spiking Nationwide
United Supermarkets is part of a national retail reckoning. Albertsons said in early 2025 that its Safeway division would cut nearly 400 corporate jobs. Kroger has planned to close 60 stores and eliminate nearly 1,000 corporate roles.
Retail closures were up 67% in 2025 compared with 2024, with nearly 6,000 shutdowns by July. Retail job cuts hit nearly 93,000 announcements in 2025, a 123% jump. The key detail is when the Lubbock cuts actually land.
The 6-Month Window That Changes Lives
The layoffs unfold in phases. First separations start no sooner than January 19, 2026, with restructuring continuing gradually through July 2026. United expects the system conversion to begin in late January 2026 and finish by mid-to-late 2026.
United says it has already notified workers whose roles will be eliminated. Even with notice, six months of uncertainty can disrupt housing, childcare, and relocation plans. The impact won’t stay inside one building either.
Store Communities Could Feel The Strain
The United Family’s 96–99 stores across 54 communities depend on headquarters support for merchandising, marketing, supply chain coordination, financial planning, and vendor relations. Cutting about 25% of HQ staff can mean slower decisions and thinner regional support.
Cities like Amarillo, Wichita Falls, and Lubbock may feel broader effects if services get consolidated or outsourced. United argues new systems will improve efficiency, but transitions often bring short-term service gaps. Another recent move offers a clue about the direction.
A Store Closure Raised Quiet Alarm Bells
United Supermarkets permanently closed a store in Abilene, Texas, on July 19, 2025, at Ambler and Pine Street. The company said then, “There are no plans for any further store closures,” but the new headquarters restructuring suggests continued tightening.
Abilene still has 4 other United Supermarkets and 1 Market Street location, yet corporate support is now shrinking. When store closures and HQ cuts align, communities start asking harder questions about protections and obligations.
What WARN Rules Actually Promise Workers
The WARN Act requires employers to notify employees, state workforce commissions, and local government units at least 60 days before certain mass layoffs. Covered employees may be entitled to 60 days’ notice, COBRA continuation options, and back pay and benefits if notice rules are violated.
Civil penalties can reach $500 per day for failing to notify local government. Employees or unions can sue in federal court. For United workers, the date math is close enough to keep attorneys interested. So what should impacted employees do right now?
Smart Steps After A WARN Notice
Affected workers should review any severance offer carefully before signing and consider consulting an employment attorney about WARN rights and other claims. They should also track COBRA deadlines, gather pay and benefits records, and document notice dates.
The Texas Workforce Commission offers rapid response services, including job search help, training benefits, and case management. Workers should avoid signing agreements they do not fully understand, especially those with non-disclosure or non-disparagement clauses. The bigger question is what these cuts signal for the local economy.
When Layoffs Trigger Wider Domino Effects
Research shows closures and layoffs can create “domino effects” in local economies, reducing customer traffic and shrinking municipal tax revenues that fund schools, police, and infrastructure. In Lubbock, where retail activity has been modest, 126 headquarters cuts can weaken already fragile demand.
The lost wage capacity is estimated at about $6.2 million annually circulating through the area. Restructuring can also reduce productivity, increasing strain on remaining staff. If this is part of a longer pattern, the next moves matter even more.
The Grocery Industry Is Getting Leaner
Susan Morris told the Wall Street Journal Albertsons plans to become “leaner” and negotiate more aggressively with suppliers. The company is pushing retail media and stronger private label offerings, strategies that often require fewer but more specialized corporate roles.
E-commerce profitability remains elusive, even as online sales grow. Kroger’s e-commerce business has not yet turned profitable despite a 16% sales increase. Albertsons projects productivity gains through 2026, which can imply more restructuring ahead. If mergers are off the table, consolidation can look different.
What Communities Should Prepare For Next
Lubbock and the 54 communities served by United Family stores may need practical resilience plans: workforce retraining pipelines, incentives to attract other corporate employers, and support systems for displaced families. Texas Workforce Commission rapid response services can help coordinate reemployment efforts, but the scale of disruption matters.
Policy questions also hang over the moment. Should states offer incentives to keep headquarters jobs local? Should communities steer displaced professionals toward healthcare and other growth sectors? Research suggests aggressive cuts can hurt long-term performance, complicating the usual argument that layoffs always strengthen a company. The longer story is still unfolding, and the dates on the calendar will tell it.
Sources
United Supermarkets cuts 126 jobs at Texas HQ. Supermarket News, November 21, 2025
WARN Notice filed by United Supermarkets. Texas Workforce Commission, November 19, 2025
United Supermarkets WARN Act Investigation. Strauss Borrelli PLLC, November 20, 2025
Albertsons Companies merger termination and strategic planning. Albertsons Companies, Inc., December 2024
Business Employment Dynamics in Texas First Quarter 2025. Bureau of Labor Statistics, 2025
The Recent Slowdown in Labor Supply and Demand. Federal Reserve Bank of San Francisco, January 2026