United Supermarkets, a Texas grocery chain with roots dating to 1916, plans to cut 126 jobs at its Lubbock headquarters starting in January 2026. The layoffs, affecting about 25% of the corporate staff of roughly 510, stem from a multiyear push to install new operating systems across its brands.[1]
Headquartered in Lubbock since the 1950s, United Supermarkets operates under Albertsons, which acquired it in 2013 while allowing significant independence. The company filed a WARN notice with the Texas Workforce Commission on November 19, 2025, signaling separations beginning no earlier than January 19, 2026, and extending through July 2026. This timeline coincides with a system conversion projected to wrap up by mid-to-late 2026.
The cuts target director roles, marketing positions, and support desk jobs, phased gradually rather than all at once. Affected employees have received notice, and the company plans to explore alternative placements where feasible. The annual payroll for these roles, based on an average salary of $78,042, totals about $9.83 million, excluding severance, benefits, or taxes. A lower estimate pegs the 2026 salary impact at $6 million to $9 million.
New Operating Systems Drive Restructuring
United Supermarkets, doing business as The United Family, describes the changes as a major investment in tools to boost efficiencies and service quality for its United Supermarkets, Market Street, Amigos, United Express, and Albertsons Market banners. The initiative follows Albertsons’ failed $24.6 billion merger with Kroger, announced in October 2022 and blocked by federal courts in Oregon and Washington in December 2024.
Albertsons has outlined a three-year, $1.5 billion cost-reduction plan launched in 2024, focusing on digital expansion, retail media, and technology upgrades. Since the merger collapsed, the company has eliminated about 800 jobs nationwide and closed nearly a dozen stores. CEO Susan Morris has emphasized becoming leaner to counter inflation and fund growth.
Regional Footprint and Local Impact
The United Family runs 96 to 99 stores in 54 communities across West Texas, North Texas, and New Mexico, employing around 15,000 people. Lubbock, with 266,878 residents and a median household income of $32,807, faces a notable jolt. Unemployment there stood at 3.4% in May 2025, up from 3.0% the prior year. The lost wages—roughly $6.2 million annually—could ripple through local restaurants, shops, and services, amplifying effects via reduced spending.
Texas job growth has slowed, with only 17,600 positions added in August 2025. In the first quarter of 2025, net private-sector employment fell by 3,816 jobs. Retail sales contracted sharply in December, per a service sector survey with a sales index of -20.6.
Legal Scrutiny Over WARN Compliance
Law firm Strauss Borrelli PLLC is probing whether United met federal WARN Act requirements, which mandate 60 days’ notice for mass layoffs at firms with 100 or more employees. The 61-day gap between the November 19 filing and January 19 start date draws attention. Violations could trigger back pay, benefits, COBRA extensions, and penalties up to $500 per day for failing to alert local governments. Employees may pursue federal lawsuits.
Workers should scrutinize severance packages, consult attorneys on rights, document notices, and tap Texas Workforce Commission rapid response for job aid and training. Avoiding hasty signatures on agreements with restrictive clauses is advised.
Industry Trends and Community Ripples
These cuts fit a broader retail wave: Albertsons’ Safeway division shed nearly 400 corporate jobs in early 2025; Kroger plans 60 store closures and 1,000 role eliminations. Nationwide, retail closures rose 67% in 2025 versus 2024, reaching nearly 6,000 by July, with job cut announcements surging 123% to 93,000.
A recent United store closure in Abilene on July 19, 2025, at Ambler and Pine Street—despite assurances of no further shutdowns—hints at ongoing adjustments. Reduced headquarters support may slow merchandising, marketing, and supply chain work for stores in places like Amarillo and Wichita Falls.
As Albertsons eyes supplier negotiations, private labels, and e-commerce—where profitability lags despite sales gains—these moves signal deeper consolidation. Lubbock and served communities may require retraining, incentives for new employers, and policy debates on retaining jobs. Research on layoff “domino effects” warns of declining tax revenues and demand, testing local resilience as restructuring unfolds through 2026.
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