Whole Foods is cutting 1,500 jobs in the near future, apparently in response to a changing market. This follows the creation of about 9,000 jobs last year. They claim that they need to reduce prices and increase spending on technology in order to stay competitive.
Whole Foods has taken a few hits to their reputation of late, especially as they’ve been accused of price gouging in New York. The increase in competition, both from other specialty grocers and in the number of other grocers who are carrying organic food, means that their traditionally high prices will have to come down.
The company says they expect most of the people who are let go will be able to find other job within the company, either in other positions or in other stores. However, if there are jobs for those 1,500 people in other roles or in other stores, why not try to transfer them to those new positions, instead of letting them go?
They’re even planning on opening a new chain of stores, called 365, that will be cheaper and will cater to younger customers. If they’re capable of opening new stores, starting a new chain within the umbrella company, and if the people they’re letting go can find other jobs within the company, why let them go in the first place? These business practices are unlikely to increase employee and customer trust.