As part of a restructuring plan in the US, Amazon is implementing job cuts within its Fresh Grocery stores.
On Thursday, the company confirmed that it is eliminating zone lead roles, which are lower-level management positions in its grocery stores. These roles are responsible for overseeing associates and handling customer issues, among other responsibilities.
Amazon did not disclose the exact number of employees who would be affected by the job cuts. However, The Washington Post reported on Wednesday that hundreds of Fresh employees are expected to be let go as a result of the restructuring.
“Like any retailer, we periodically assess our stores organizational needs and make decisions to increase efficiencies for our employees and deliver customer value,” Amazon spokesperson Jessica Martin said in a prepared statement. “As a result, we’ve decided to evolve our in-store staffing and operations model to better serve our customers and teams.”
The retailer announced that it will collaborate with the impacted employees to assist them in finding new roles within the company. Additionally, employees who choose to leave Amazon will receive severance benefits.
Amazon runs 44 Fresh grocery stores throughout the nation, with the majority situated in California, Illinois, Virginia, and Washington state. Additionally, the company manages over 20 cashier-free convenience stores under the Amazon Go brand. Furthermore, Amazon is the owner of Whole Foods, a supermarket chain it acquired in 2017 for a significant sum of $13.7 billion.
In light of increased economic concerns over the past year, the company has been actively working to control costs across all aspects of its operations, including the grocery sector.
At the beginning of this year, Amazon announced its intentions to close certain Amazon Fresh and Go stores as part of a routine evaluation of its grocery portfolio. Subsequently, in April, Whole Foods implemented a restructuring plan, resulting in the reduction of several hundred jobs.
According to Amazon CEO Andy Jassy, groceries present a significant growth opportunity for the company. However, he also emphasized the need to identify a mass grocery format that suits the company’s objectives and requirements.
The recent job reductions at the grocery chain add to the series of layoffs at Amazon, impacting approximately 27,000 employees within the past year.