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SEATTLE – As part of a restructuring effort, Amazon has merged the corporate teams behind its Amazon Go convenience stores and Amazon Fresh grocery business. The restructuring has resulted in a limited number of layoffs within the company's Worldwide Grocery Stores division, though Amazon has not disclosed specific numbers or positions affected.
The decision follows an internal review of both brands, which led to the determination that specific roles were no longer required. Employees impacted by the layoffs in the U.S. will receive at least 60 days of pay and benefits, as well as job search support and transitional health benefits. They will also be eligible for severance packages.
“We regularly review our team structures to ensure we’re best set up to serve customers. Following a recent review, we’ve identified a very small number of roles in the Worldwide Grocery Stores org that are no longer required,” an Amazon spokesperson said. “We’ve already notified employees whose roles are impacted, and we’re committed to supporting them through their transition.”
Amazon's physical retail operations have faced challenges in recent years. Amazon Go has significantly reduced its store count, dropping from 30 locations in early 2023 to about 15 today. Meanwhile, despite surpassing 60 stores last year, Amazon Fresh paused the expansion of new locations in 2023 due to economic headwinds.
The restructuring comes amid broader company-wide efficiency measures announced by Amazon CEO Andy Jassy last September. Jassy highlighted the need to streamline operations, which has led to middle management reductions across multiple departments, including retail.
In late February, Claire Peters, Amazon’s vice president of retail, informed affected employees via a video call that their roles would be eliminated. However, despite these workforce reductions, Amazon insists that it remains committed to investing in its grocery and convenience store businesses.
The merger also coincides with leadership changes at Amazon’s grocery division. In January, Whole Foods Market CEO Jason Buechel was appointed head of Amazon’s Worldwide Grocery Stores division, which oversees Amazon Fresh, Amazon Go, and Whole Foods. Amazon stated that the corporate restructuring is unrelated to Buechel’s promotion.
Thorvardur de Shong
As of February 15, Amazon operates 63 Amazon Fresh stores across the U.S. and maintains Amazon Go locations in Seattle, Chicago, New York City, and Los Angeles. The company continues to explore ways to enhance its grocery offerings and expand its reach in the retail sector.
Despite recent setbacks, Amazon remains focused on its goal of making grocery shopping more convenient and affordable. The company’s broader grocery strategy includes Amazon Fresh, Amazon Go, Whole Foods Market, third-party grocery partnerships, and its latest concept, Amazon Grocery, which launched in Chicago in October 2023.
