Whole Foods has been in expansion mode in Memphis recently, opening its second store in the Memphis metro area in August at 7825 Poplar, only blocks from what is for now the largest Kroger in the Mid-South. It anticipates numerous reductions to be managed through natural attrition and expects a significant percentage of affected Team Members will find other jobs from the almost 2,000 open positions across the company or via new jobs created from the more than 100 new stores in development.
Advertisement
The cuts are aimed at reducing costs as the company invests in technology upgrades, Whole Foods said in a filing. In the past year, the company’s stock has slipped by more than 35 percent. “This is a very hard decision”, Whole Foods co-CEO Walter Robb says in a statement.
On July 29, 2015, after the close of trading, the organic grocer released lower-than-expected quarterly earnings and fourth-quarter guidance, which the company attributed in part to the New York City Department of Consumer Affairs’ allegations that accuses the Company of a long running scheme to defraud Whole Foods shoppers through mislabeling product weights.
Whole Foods said Monday that it’s cutting 1,500 jobs.
Whole Foods did not immediately respond to CNNMoney’s request for comment.
Whole Foods in May announced plans for a new sister chain of stores called 365 by Whole Foods-named after its store brand. Whole Foods has about 91,000 employees and 431 stores across the U.S., U.K., and Canada. The first location is set to open next year in Los Angeles.
Whole Foods has been working for more than two years to cut prices and fix its reputation for high prices, but tactics like more deals have yet to boost sales to the extent hoped.
Advertisement
The affected workers were also offered the option of transition pay or a severance package, according to Robb.
