Whole Foods Market (NASDAQ:WFM) said in an SEC filing Monday that it will cut about 1,500 jobs, or 1.6% of its workforce, over the next eight weeks as it lowers sticker prices and invests in technology. Whole Foods said in May that it would launch a new chain of smaller, more value-focused shops next year. Darrah Gist, Whole Foods media contact for the Southern Region, said all of the company’s stores would be affected.
Advertisement
The employees affected will mostly be those who work behind the scenes at stores, the company told Reuters.
This announcement comes during what has been simply a bad year for the company, which has seen its shares decline by more than 35%. Robb and co-CEO John Mackey admitted to making “some mistakes” after a local investigation alleged Whole Foods was systematically overcharging for certain pre-packaged goods.
The layoffs come as Whole Foods finds itself competing against not just other upscale or all-natural grocers but traditional supermarkets like Kroger (NYSE:KR) and big-box stores like Target (NYSE:TGT) and Wal-Mart (NYSE:WMT) that sell an increasingly large offering of organic and natural fare. The two deny that accusation though and said that any mislabeling was “unintentional”.
In late July, the company’s stock was hammered after reporting sales that disappointed while also lowering its outlook for sales during 2015.
It’s trying to appeal to a broader audience, with plans to open a new chain of “365” stores with lower prices. Whole Foods investors have until October 5, 2015 to file a lead plaintiff motion, and are encouraged to contact Howard G. Smith, Esq.to discuss their legal rights in the pending class action.
Advertisement
Shares were down 1% to $30.79 in morning trading.
