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We’re just learning layoff notices went out this week for hundreds of workers in Amazon’s grocery business.
“This is probably not entirely surprising” Managers at Amazon’s Fresh Stories took the hit; but these layoffs aren’t driven by the economy says John Logan, a professor of labor and employment “Amazon has struggled to find out how to make its food retail business profitable for several years now.”
Amazon has 40 Fresh Stores and 20 “GO” Store locations; but changes to its more than 500 Whole Foods stores haven’t inspired shoppers “The most talked about aspect of that part of the company was the cashier-less technology, computerized shopping carts, Alexa voice assisted kiosks; but they’ve always struggled.”
Logan says Amazon grew bigger and faster during the pandemic and cutting costs was always possible if not expected “It served Amazon well having an important brick and mortar presence where you can return Amazon goods, but it’s a very competitive sector.”
CEO Andy Jassy says Amazon has been working to find a winning formula, but in his words “We aren’t as far along as we’d hoped.”
