At Amazon’s 40+ Fresh grocery stores across the US, employee numbers are falling. The retailer is eliminating the “zone lead” position, which was a store manager position with responsibility for directing work in specific departmental duties, including employee training.
The precise number of workers who will be let go has not been made public. However, according to media reports, hundreds may be affected. In the past year, the company has cut about 27,000 jobs worldwide.
Amazon appears to be attempting to overhaul both its in-store staffing and its operations model in order to provide both its workforce and customers with services that are more effective. Amazon had announced its plans to close some of its Fresh outlets and Go stores earlier this year.
Employees have reportedly been offered severance packages or other positions within the company, according to the Washington Post.
The states of Virginia, Washington, California, and Illinois have the most Fresh stores. It also runs more than 20 cashier-free convenience stores in the US under the name Amazon Go. Amazon also acquired Whole Foods in a $13.7 billion deal about six years ago. As part of a restructuring effort, Whole Foods let go of hundreds of employees in April.
It is not surprising that the grocery stores were also impacted because Amazon has been scrutinizing spends across all of its operations in an effort to cut costs. Finding a suitable mass grocery format was mentioned by Andy Jassy, CEO of Amazon.