Upscale food market operator Whole Foods Market Inc. announced Monday that it plans to layoff 1,500 people, about 1.6 percent of its total workforce, over the next two months.
The Texas-based company said in a regulatory filing that the job cuts are "part of its ongoing commitment to lower prices for its customers and invest in technology upgrades while improving its cost structure," according to the Triad Business Journal.
The affected positions will mainly be in U.S. stores but "back of house" positions that were not customer facing may also be in peril.
Walter Robb, co-CEO of Whole Foods Market said: "This is a very difficult decision, and we are committed to treating affected team members in a caring and respectful manner. We have offered them several options including transition pay, a generous severance, or the opportunity to apply for other jobs. In addition, we will pay these team members in full over the next eight weeks as they decide which option to choose," according to The Times-Picayune.
The cuts come as the chain, which is renowned for selling natural and organic grocery products, has been facing increasing competition from specialty and mainstream retailers.
Whole Foods continues to try and shed its "Whole Paycheck" nickname, earned for its notoriety for selling merchandise at high prices, reported Reuters. So high, in fact, that The New York's Department of Consumer Affairs launched an investigation into the chain after finding that it overcharged on some prepackaged foods at nine of its New York City stores.
"We believe this is an important step to evolve Whole Foods Market in a rapidly changing marketplace," Robb concluded.
