In a new wave of restructuring, Amazon is gearing up for significant layoffs, and this time the impact is set to hit employees in its fresh grocery stores.
The e-commerce giant has decided to trim down its workforce as part of a cost-cutting strategy.
Specifically, Amazon is planning to eliminate certain ‘zone lead’ positions within its grocery stores to streamline operations and optimize efficiency.
Thousands of Employees May Face Layoffs
As of now, Amazon has not disclosed the exact number of employees who will be affected by the layoffs.
However, according to a report by The Washington Post, the workforce reduction could extend to thousands of employees in the company’s Fresh Stores. The decision has already been set in motion.
Amazon’s Official Statement
Amazon’s spokesperson, Jessica Martin, clarified that the company periodically reviews its operations and makes necessary adjustments to enhance employee productivity and deliver improved services to customers.
The restructuring aims to fine-tune the functioning of the stores, ultimately leading to a better customer experience.
44 Stores Across the Nation
Currently, Amazon operates a total of 44 grocery stores across the United States, with a significant concentration in states like California, Illinois, Virginia, and Washington.
In addition to these grocery stores, the retail giant also operates 20 cashier-free convenience stores operating under the Go brand, forming a comprehensive food business. Amazon acquired the Go brand in 2017 for a whopping $13.7 billion.
Many Jobs Lost in April
Last year, Amazon undertook cost-cutting measures, leading to closures of Amazon Fresh and grocery stores at various intervals. The closures were part of the company’s broader initiative to reduce expenses.
According to The Washington Post’s report, factors beyond just cost-cutting contributed to layoffs within the grocery chain, resulting in around 27,000 job losses last year.
Amazon’s CEO, Andy Jassy, acknowledged the potential in the grocery store sector but acknowledged the need for a mass gross format that would align with the company’s vision.
As the situation unfolds, affected employees and industry observers remain watchful of how Amazon’s grocery store business will evolve, and what the future holds for both the company and its workforce in this particular segment.