Amazon is set to shut down all 72 of its Amazon Go and Amazon Fresh stores across the U.S., signaling a major shift in its retail strategy as the company pivots to focus on expanding its Whole Foods Market and online grocery delivery services.
The decision comes amid the axing of approximately 16,000 corporate jobs, part of an aggressive restructuring initiative that aims to streamline operations and adapt to the rapidly evolving retail landscape.
This marks the second wave of layoffs in three months, bringing the total job cuts to around 30,000 as Amazon seeks efficiency in a highly competitive market increasingly driven by advances in artificial intelligence.
Locations that close may be transformed into Whole Foods stores, reflecting Amazon's strategy to consolidate its physical retail efforts around more successful formats.
The closures also entail the discontinuation of the Amazon One palm reading technology, showcasing how the company's ambitious physical retail ventures have failed to meet expectations and differentiate themselves from rivals.
Local responses to the closures have been mixed, with some officials noting ongoing developments despite significant shifts in retail operations, highlighting the complexity of the company's transition in a post-pandemic consumer environment.
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