Amazon Cuts Hundreds of Jobs in Grocery Division Amidst Austerity Measures

Amazon.com Inc. announced it will be cutting hundreds of jobs from its grocery division, Investors King reports.

The layoffs affect “zone leads,” who manage sections of individual Amazon Fresh stores, the newspaper reported on Wednesday, citing anonymous sources.

“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 an emailed statement.

“We remain committed to our grocery business, and we’re working closely with affected employees to help them find new shifts or roles within Amazon.”

Amazon operates about 44 Fresh stores in several US cities and also owns the upscale Whole Foods Market chain but has struggled to crack the grocery market.

Chief Executive Officer Andy Jassy has ushered in a period of austerity as Amazon contends with slowing sales growth. The company paused expansion of its Fresh grocery operation, but Jassy has said the business remains a priority.

“We’re doing a fair bit of experimentation today with those stores to find the format that we think resonates with customers, is differentiated in some meaningful fashion, and where we like the economics,” Jassy said during an earnings call with financial analysts in February.