Amazon has merged the corporate teams behind its Amazon Fresh grocery stores and Amazon Go convenience stores, a company spokesperson announced on Tuesday.
The move follows an internal review that found certain roles within the Worldwide Grocery Stores division were no longer necessary.
While Amazon did not disclose the number of affected employees, it described the layoffs as ‘very small’.
The restructuring comes as Amazon Go has struggled to expand, while Amazon Fresh has significantly grown its footprint. It also aligns with a broader efficiency drive across the company.
Last September, CEO Andy Jassy announced plans to streamline operations by reducing middle management. That initiative now appears to have reached Amazon’s retail division.
According to Retail Dive, two sources familiar with the situation said Amazon’s vice president of retail, Claire Peters, informed affected employees via a video call in late February that their roles would be cut.
Those impacted in the US will continue receiving pay and benefits for at least 60 days and will have access to job placement support, transitional healthcare, and severance.
Amazon’s physical retail segment has faced setbacks in recent years. More than half of Amazon Go locations have closed, shrinking from around 30 stores in early 2023 to about 15 today.
Meanwhile, Amazon Fresh exceeded 60 stores last year but halted further expansion in 2023 due to economic pressures.
Despite these challenges, Amazon says it remains committed to its grocery and convenience store business.
The restructuring comes just weeks after Jason Buechel, CEO of Whole Foods Market, was named head of Worldwide Grocery Stores, though Amazon says the changes are unrelated to his promotion.
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