Home » US business news • US Employment News » Amazon’s Whole Foods announces layoffs to rein in costs

Amazon’s Whole Foods announces layoffs to rein in costs

By Nithya Bose in US business news, posted April 21, 2023

Amazon-owned Whole Foods is laying off hundreds of corporate employees to reorganize some teams as part of its cost-cutting efforts.

Over the next two months, the supermarket chain will restructure certain global and regional support teams.

A company spokesperson said the cuts represent less than half of its headcount.

The executive team said in a memo: “As the grocery industry continues to rapidly evolve, and as we — like all retailers — have navigated challenges like the COVID-19 pandemic and continued economic uncertainty, it has become clear that we need to continue to build on these changes.

“With additional adjustments, we will be able to further simplify our operations, make processes easier, and improve how we support our stores.”

Whole Foods, which operates in nine different regions, will reduce its operations to six.

The memo says the move won’t close stores or axe any store or distribution center workers.

The spokesperson said the company is looking to expand and better serve customers by altering its operating structure.

Whole Foods has seen multiple operational changes since Amazon purchased it for $13.7 billion in 2017.

In 2021 it merged its global and regional merchandising teams and turned its technology team focuses on software engineering, technical product, and program manager roles to “sustain our growth.”

Need Career Advice? Get employment skills advice at all levels of your career

Amazon CEO Andy Jassy recently paused the growth of its Fresh retail network as part of a companywide attempt to save costs.

It also closed some Fresh and Go cashier-less convenience outlets.

In a recent wave of layoffs announced in January, several employees in Amazon's grocery division were let go.

Still, Jassy said he believes Amazon has the potential to expand its grocery line.

Source: CNBC

Follow us on YouTube, Twitter, LinkedIn, and Facebook.