US grocer Supervalu Inc has announced a business restructure which could see 200 jobs axed.

The decision to create a “streamlined independent business organisation” will see Supervalu consolidate its business from three to two regions, forming new east and west teams.

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The new east and west business regions will be located in Mechanicsville, Virginia, and Hopkins, Minnesota, and led by presidents Kevin Kemp and Bill Chew respectively.

Supervalu said the reason for the restructure was to “reduce operating costs while continuing to drive sales growth with its current and prospective customers”.

It “anticipates reducing” its entire workforce by 200 positions.

“Impacted employees will have an opportunity to apply for open positions within the new organisation,” the statement added.

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The company said it expects to create approximately 120 new jobs.