Amazon is shutting down all Amazon Go and Amazon Fresh stores, marking a significant shift in its grocery strategy as it refocuses on expanding Whole Foods Market and enhancing online grocery delivery services.
The closure affects 72 stores nationwide, reflecting challenges in maintaining profitability in its physical retail ventures and signaling a retreat from its initial bold foray into brick-and-mortar grocery concepts.
Alongside the store closures, Amazon plans to cut approximately 16,000 corporate jobs globally in a move aimed at streamlining operations and investing more heavily in artificial intelligence technologies.
This major restructuring effort results in a total of 30,000 job losses since October, underscoring Amazon's strategic pivot towards greater efficiency and innovation in a rapidly evolving market.
Employees affected by the layoffs will receive support for transitioning to new roles within the company, despite the turmoil created by premature internal announcements about the layoffs.
The decisions reflect a broader trend in Amazon's retail strategy, as it moves to consolidate its operations and prioritize well-established formats like Whole Foods over less successful ventures.
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