The company is eliminating the “zone lead” position, a store level management position with responsibilities in individual departments that include oversight and employee training.
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New Delhi: Amazon is set to lay off workers at Fresh Grocery stores as part of a restructuring plan in the US, according to CNBC. The company is eliminating the “zone lead” position, a store level management position with responsibilities in individual departments that include oversight and employee training. Amazon did not disclose how many employees would lose their jobs as a result. The Washington Post had reported that hundreds of Fresh employees would be let go.
“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 layoffs will impact hundreds of employees who will see their last day on the job on Tuesday, according to the Washington Post. Employees have been offered other positions with the company or a severance package.
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Amazon operates 44 Fresh grocery stores across the country, most of which are located in California, Illinois, Virginia and Washington state. It also operates more than 20 cashier-free convenience stores in the US under the Amazon Go brand and owns Whole Foods, which it purchased in 2017 for USD 13.7 billion.
As anxieties about the economy rose in the past year, the company has been aiming to rein in costs throughout its operations, including in groceries.
Earlier this year, Amazon said it planned to close some Amazon Fresh and Go stores as part of a periodic assessment of its grocery portfolio. In April, Whole Foods cut several hundred jobs as part of a restructuring plan.
Amazon CEO Andy Jassy has pointed out groceries are a big growth opportunity for the company, but also noted the company needs to find a “mass grocery format” that works.
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The job cuts at the grocery chain follow other layoffs at Amazon, which have affected roughly 27,000 employees over the past year.
