Whole Foods Is Latest Brand To Announce Hundreds of Job Cuts as Layoffs Misery Continues
Key takeaways
- Whole Foods is cutting hundreds of jobs, totaling roughly 0.5% of its global headcount
- Parent company Amazon’s stock was down half a percent by Thursday’s close
- The wider economic climate means the ‘white-collar recession’ is still alive and well
Upmarket grocery chain Whole Foods, which is owned by shopping giant Amazon, has announced it’s slashing “several hundred” corporate jobs as the so-called white-collar recession continues.
Over the next two months, Whole Foods will see its operations restructured and streamlined as Amazon progresses with improving efficiencies across its portfolio. We’ve got the details and how the wider market looks — keep reading.
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What’s the latest at Whole Foods?
In a memo to employees, Whole Foods said it was looking at restructuring the business to downsize its regional operations, shifting from nine to six regions in the US. The company will also simplify its operations team. The cuts reportedly amount to roughly 0.5% of Whole Foods’ global workforce.
The reason, of course, was the challenging economic climate. Amazon’s high-profile mass layoffs have hit headlines throughout 2023, with the memo stating the sector “continues to rapidly evolve” and “it has become clear that we need to continue to build on these changes”.
Amazon’s stock price was pretty flat after the announcement but ended Thursday down 0.5%. The shares have recovered ahead of Amazon’s eagerly anticipated Q1 earnings report.
Who else is making layoffs?
Amazon and Whole Foods sadly aren’t the only ones laying off workers. In the same sector, Walmart announced earlier this month it was planning to eliminate 2,000 warehouse jobs in a bid to rein in costs. Considering it’s one of those fabled ‘recession-proof’ stocks, it shows the scale of the situation.
Last week Meta and Disney both made headlines as they pursued their aggressive downsizing operations including laying off thousands of workers apiece. Meta’s engineering and tech teams both felt the heat as 4,000 roles were cut while more business operations roles are set to be laid off next month.
Disney’s ESPN branch has seen on-air talent and management roles at ESPN axed, having already cut positions in its metaverse division and international offices. Disney is implementing a $5.5 billion restructuring plan, so it’s almost sure we’ll hear of more job cuts in the near future.
The bottom line
As the U.S. economy slides into a recession, we could see further job losses in the market and a loss in share prices. It’s not a fun time, so it’s always a good idea to use recession-proofing strategies for your portfolio to minimize losses.
Q.ai’s Foundation Kits benefit from Portfolio Protection, which is a handy tool in your arsenal during an economic downturn. The AI assesses risks in your investment portfolio and deploys sophisticated hedging strategies to help you keep more of your hard-earned gains.
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