Grocery chain, Loblaw has announced that it is planning to cut around 700 administrative and management positions at head office in Brampton in Toronto area.

The company said on Tuesday that it will start sending notices today and the process will be completed within the coming three weeks. Loblaws president Vicente Trius wrote in an email to the staff that the office administration costs of the company is much higher than other retailers.

"I am confident that creating a leaner organization will help us prioritize more effectively and serve our customer better," said Trius.

The company said that it will take a charge of $60 million relating to its decision to cut head office jobs, in the fourth quarter. The retailer is currently implementing its long term plan to improve its technology and supply chain in order to better compete with bigger rivals including Wal-Mart.

The company also said in the release that it has opened 14 new stores during the previous one year and has added around 2,000 new jobs. Shares of the company increased 84 cents and closed at $34.72 following the announcement of the job cuts at head office.