Amazon Fresh is laying off hundreds of store workers

• Amazon Fresh is cutting hundreds of store jobs, according to the Washington Post.
• The cuts are affecting “zone leads” who manage specific sections of the grocery stores.
• Amazon has paused Fresh openings and closed some stores over the past year.

Just under three years after it opened its first store, Amazon Fresh is laying off hundreds of workers. 

Amazon is cutting positions known as “zone leads,” the Washington Post reported on Wednesday. These roles managed specific sections of its stores. Workers were informed that their jobs were being eliminated on Tuesday, and that the decision is the result of cost cuts at the chain, the Post reported.

Workers were told not to report to work after Tuesday, the report said. They would be paid for 60 days, the Post reported, citing a former Amazon employee. Workers would also be eligible for other jobs within Amazon or severance. 

“Like any retailer, we periodically assess our stores’ organizational needs and make decisions to increase efficiencies for our employees and deliver customer value,” Amazon spokesperson Jessica Martin told Insider. “As a result, we’ve decided to evolve our in-store staffing and operations model to better serve our customers and teams.”

“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,” Martin said.

The layoffs are the latest sign of problems at the retailer’s namesake grocery. Amazon Fresh operates 44 stores around the US. Over the last year, it has closed some locations and paused some new openings. Amazon touted a discount of up to 25% for Prime members at Amazon Fresh this past Prime Day.

But Amazon CEO Andy Jassy said earlier this year that the company is still interested in making its grocery business work long-term. Meanwhile, Whole Foods, the other grocery chain that Amazon owns, is planning to accelerate the pace of new store openings, CEO Jason Buechel said in January.

Are you an Amazon Fresh employee affected by the layoffs or have a story idea to share? Reach out to this reporter at [email protected] or by encrypted messaging app Signal at +1-808-854-4501.