The job eliminations at Amazon Fresh come in the midst of a year of job cuts throughout the tech industry. ![]() But in an earnings call this year, he said the company would pause the opening of new physical Fresh locations while it reevaluates strategy and tries to find a way to turn Amazon Fresh into a financial success. In spring 2022, Amazon announced that it was scaling back in retail, eliminating Amazon Books and 4-Star stores, and reducing the number of Amazon Go convenience stores.Īmazon CEO Andy Jassy has said the company is committed to making grocery work. As the tech giant has tried to rein in growth and cut costs following the online shopping frenzy at the height of the coronavirus pandemic, it has laid off thousands of workers, reorganized its logistics network, and killed various projects and divisions. In 2020, it began opening physical Fresh stores, including more than a dozen in the United Kingdom.īut recently, Amazon has been reevaluating that expansion. Ten years later, it acquired Whole Foods for $13.7 billion, hoping to learn how to successfully operate a grocery chain. Interim CEO Patty Stonesifer sits on Amazon's board.)Īmazon launched Amazon Fresh as a delivery-only brand in 2007. (Amazon founder Jeff Bezos owns the Washington Post. Impacted staff can apply for other positions within Amazon or accept a severance payment. "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." "As a result, we've decided to evolve our in-store staffing and operations model to better serve our customers and teams," Martin said. In a statement, Amazon spokesperson Jessica Martin said the company is making changes as it evaluates Amazon Fresh's performance. The layoffs come as economic uncertainty drives Amazon to cut costs across its operations and to home in on a profitable model for its grocery businesses in particular - an industry the company continues to pursue despite its retreat from other brick-and-mortar retail businesses. Laid-off employees won't report to work after Tuesday but are being paid for 60 days, a former Amazon employee said. Staff were told the cuts were part of a cost reduction plan, the people said. The positions being cut are "zone leads" who manage sections of individual stores, according to three former Amazon Fresh employees who spoke on the condition of anonymity to protect their careers. cities including Los Angeles, Philadelphia and Naperville, Ill. © 2023 NYP Holdings, Inc.Hundreds of grocery store staffers who work for Amazon Fresh found out their jobs were being permanently eliminated on Tuesday.Īmazon operates 44 Amazon Fresh stores in the U.S. The company plans to stop its prior biannual stock grants to Jassy, aiming for the award disclosed Friday to represent most of his compensation for the coming years, a person familiar with the matter told Reuters.Īmazon also will make arrangements to provide for Jassy’s personal security, according to the filing. Other Big Tech CEOs, like Microsoft’s Satya Nadella (left) and Apple’s Tim Cook (right, with China’s Internet czar Lu Wei standing between them at a 2015 Microsoft event) remain more highly compensated than Amazon’s incoming CEO Andy Jassy. Apple’s Tim Cook had $281.9 million in stock vest, according to its 2021 proxy.Īnd Bezos, despite a smaller salary, has been the world’s richest person thanks to his being the largest shareholder in Amazon. Microsoft’s Satya Nadella had $215 million in stock vest for the fiscal year ended June 30, 2020, on top of a base salary of $2.5 million, a filing showed. That’s still smaller than rival CEOs in the technology industry. On top of that, he has $45.3 million in previously awarded stock that is vesting this year, and he had $41.5 million in shares that vested in 2020. Jassy’s base salary has been $175,000, filings show. Though Amazon did not disclose the vesting schedule, its previous stock grants have not vested right away. The award’s exact value will depend on how the shares are trading when they pay out in future years, encouraging Jassy to grow a company that’s worth $1.77 trillion today. ![]() Jeff Bezos’ wealth balloons by $12 billion as Amazon stock soars 11 percentĪmazon plans to award incoming Chief Executive Andy Jassy more than $200 million in extra stock, which will pay out over 10 years, the company said in a regulatory filing on Friday.Īmazon will record the grant of 61,000 shares on July 5, the filing said, the date that Jassy succeeds Jeff Bezos in the online retailer’s first CEO transition since its founding in 1994. Amazon scraps several private label clothing brandsĪmazon workers furious over return to office warning: ‘Is this supposed to scare people?’Īmazon to ride Prime-Day wave and host sale event in October
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