Supermarket giant Coles is cutting more than 400 jobs from its Melbourne head office as it plans to open more stores in a competitive environment.
The chain will slash 378 permanent jobs and 60 contractors from its Store Support Centre, mostly salaried staff and middle management positions.
Coles managing director John Durkan says the restructure will enable increased investment in Coles' store network across Australia and simplify systems and processes in head office.
"To be a world class retailer, Coles needs to invest further in new stores, in renewing existing stores and in better service and value for our customers," he said in a statement on Wednesday.
Spokesman Alister Jordan said it was a tough decision that wasn't made without considering all reasonable alternatives.
"It is a very competitive environment," he told reporters.
"These decisions are decisions we have not taken lightly in any way."
He said the cuts would affect all units of the Melbourne head office, following a review of how the company could better invest in stores and service.
Coles says none of the jobs will go offshore and some of those people made redundant will be offered 160 redeployment opportunities at the Melbourne head office and in Victorian stores.
The Australian Services Union says it's glad jobs won't go offshore, but the cuts are still worrying.
"We are in the midst of a jobs crisis in Victoria, and any job losses, particularly in the order of hundreds in one of Australia's largest companies, is of enormous concern," ASU branch secretary Ingrid Stitt said in a statement.
The community wants a plan from employers and the government to attract investment and secure jobs, she said.
Premier Denis Napthine says Coles has assured him the company will continue its plan to open 14 new stores in Victoria, creating 3500 new jobs across the state.
Mr Durkan said the new Victorian stores will open over the next three years, and the company planned to create more than 70 positions as part of its expanding financial services offer.
"Between 2014 and 2016, Coles is investing $1.1 billion in 70 new stores across Australia, creating more than 8000 retail jobs and around 8000 construction jobs," he said.
Creating more jobs than those being cut is key to employment growth in Australia, Finance Minister Mathias Cormann says.
He denied Coles' redundancies were a blow to the federal government's 2013 election pledge to create one million jobs over five years and two million over a decade.
