Whole Foods plans to lay off several hundred corporate employees: Read the memo here
Amazon‘s Whole Foods is letting go some corporate employees as part of a planned reorganization of select teams, and as its parent company closely examines costs.
Whole Foods plans to reorganize certain global and regional support teams over the next two months, the company’s executive team wrote in a memo to employees on Thursday. As a result, the upscale grocer is laying off several hundred employees from those teams, a spokesperson confirmed. The cuts translate to about less than half of a percent of the company’s global workforce, a Whole Foods Market spokesperson said.
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“We often talk about how simplifying our work and improving how we operate is critical as we grow,” the executive team wrote in the memo. “We’ve made great progress in these areas through previous operational and organizational changes. As the grocery industry continues to rapidly evolve, and as we — like all retailers — have navigated challenges like the COVID-19 pandemic and continued economic uncertainty, it has become clear that we need to continue to build on these changes. With additional adjustments, we will be able to further simplify our operations, make processes easier, and improve how we support our stores.”
As part of the changes, Whole Foods, which operates across nine different regions, will shift to six regions. The move won’t result in any store closures or the letting go of any store or distribution center employees, according to the memo.
Whole Foods is tweaking its operational structure as it seeks to expand and better serve customers, the spokesperson said. The company has roughly 50 new stores in development, they added.
Amazon in 2017 spent $13.7 billion to acquire the upscale grocer, a move that sent shock waves through that industry. The retail giant acquired Whole Foods with the hopes of accelerating its multiyear push into selling groceries online and in physical stores.
Whole Foods has undergone other operational changes since Amazon acquired it. The company in 2021 merged its global and regional merchandising teams, and shifted its technology team to focus on software engineering, technical product and program manager roles, to “sustain our growth.”
Amazon CEO Andy Jassy recently hit pause on expansion of its Fresh supermarket chain amid a companywide effort to rein in expenses. It also shuttered some Fresh locations and Go cashierless convenience stores. Some employees in Amazon’s grocery unit were let go in a recent round of layoffs announced in January.
Still, Jassy has said he remains confident about Amazon’s potential to grow its grocery business. In his letter to shareholders last week, Jassy said the e-commerce giant “must find a mass grocery format that we believe is worth expanding broadly” to make a larger impact on brick-and-mortar grocery.
Here’s the full memo:
Improving Our Operating Structure to Better Support Our Stores
Dear Team Members,
We often talk about how simplifying our work and improving how we operate is critical as we grow. We’ve made great progress in these areas through previous operational and organizational changes. As the grocery industry continues to rapidly evolve, and as we — like all retailers — have navigated challenges like the COVID-19 pandemic and continued economic uncertainty, it has become clear that we need to continue to build on these changes. With additional adjustments, we will be able to further simplify our operations, make processes easier, and improve how we support our stores.
To achieve this, we will evolve our operating structure and make a few changes to certain Global and Regional Support teams over the next two months. We see great opportunity to advance our impact on the world, and these changes will help us fully capture that opportunity. These changes include:
- Shifting from nine to six regions with a more consistent number of stores per region. Moving to fewer regions of similar sizes will allow us to quickly make decisions, implement sustainable processes, and scale innovations. Ultimately, it will help us elevate the service we provide our customers, Team Members, and suppliers. As we redraw the lines of our regional map, some stores may become part of a new region, but this shift won’t result in any store or facility closures or change our commitment to maintaining local relevance in our stores. See our new regional map and leadership details below. Team Members can expect to hear from the leader of their future region early next week.
- Creating a unified, companywide Operations team by transitioning category-specific store operations support from regions to a single Field Support team within our Global Operations team. Additionally, we will alleviate supply chain management work from regions, transitioning these responsibilities to a new Supply Chain Performance Management function within our Global Supply Chain team. These changes will free up time for stores to focus on serving customers, while unifying communications and support around clear Operations priorities.
- Enhancing Team Member Services (TMS) support for Team Members and Leaders across the company by realigning TMS team structures. This will help eliminate a significant amount of transactional work, which will allow our TMS teams to focus more on supporting Team Member experience, growth, and development. This will also empower store leadership to operate with more agility and have more time to focus on priority initiatives.
- Adjusting structures and improving processes of several other Global Support teams to provide more effective, timely, and consistent support to stores and ensure support teams can focus on priority initiatives. We will begin sharing more information about Global Support team changes with respective teams today. We will also meet with store and facility leadership to discuss these updates in more detail.
These changes will impact our Team Members in different ways. Store and facility-based roles are not directly impacted, though there will be some adjustments to how support and store teams work together. There will be some reductions in headcount on certain Global and Regional support teams, and those impacted will receive more information today. While change is necessary and healthy for a sustainable business, it can also be very challenging, particularly when it affects the lives of Team Members. We are committed to supporting all impacted Team Members through these transitions.
As we simplify processes and improve how we operate, we will be able to quickly respond to evolving business needs, focus more on our most impactful work, and invest in new ways to serve all stakeholders. We are confident these changes will allow us to better support our stores, Team Members, and suppliers, elevate the customer experience, and position Whole Foods Market for continued growth. Most important, these changes will help ensure we deliver on our Purpose to nourish people and the planet for decades to come.
Sincerely, E-Team
ServiceTitan offices in Draper, Utah.
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ServiceTitan, a company that sells software to contractors such as plumbers and roofers, on Monday filed to go public on the Nasdaq under the ticker symbol “TTAN.”
The filing suggests that investors could be getting more interested in next-generation software companies. Just a few, including Reddit and Rubrik, debuted on public markets in the U.S. this year, and chipmaker Cerebras filed for an initial public offering. There were basically no tech initial public offerings in 2021 or 2022 as central bankers pushed up interest rates to flight inflation, making investors less willing to bet on money-losing challengers.
Based in Glendale, California, ServiceTitan offers cloud software for advertising, scheduling jobs, dispatching, producing invoices and taking payments. It had a $35.7 million net loss on $193 million in revenue in the quarter that ended on July 31, according to the filing. Revenue was up about 24% year over year, and the quarterly loss had narrowed from almost $52 million.
ServiceTitan’s revenue growth rate will stand out for people investing in cloud stocks, who have seen rates sag with few new public companies in the sector. The average growth rate for Bessemer’s Nasdaq Emerging Cloud Index, the basis for the WisdomTree Cloud Computing Fund, is 16.6%.
The company was originally founded in 2007 by Ara Mahdessian and Vahe Kuzoyan, whose fathers were both residential contractors. While most ServiceTitan customers are small and medium-sized businesses, it has started focusing more on selling products to big companies and construction customers, according to the filing.
ServiceTitan plans to keep up to 5% of shares in the IPO for eligible clients, the founders’ friends and family members and others through a directed share program.
Investors include Battery Ventures, Bessemer Venture Partners, Iconiq and TPG. Iconiq on its own controlled 24% of the compan’s Class A shares.
Competitors include Salesforce and SAP, along with specialty companies such as HouseCall Pro, Jobber and Workwave.
Goldman Sachs, Morgan Stanley, Wells Fargo and Citigroup are among the company’s IPO underwriters.
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European tech CEOs urge ‘Europe-first’ mentality to counter U.S. dominance after Trump victory
Thomas Plantenga, CEO of used fashion resale app Vinted, on center stage during Web Summit 2024 in Lisbon, Portugal.
Harry Murphy | Sportsfile for Web Summit Getty Images
LISBON, Portugal — Tech CEOs in Europe are urging region al countries to take bolder action to tackle Big Tech’s dominance and counter reliance on the U.S. for critical technologies like artificial intelligence after Donald Trump’s electoral win.
The Republican politician’s victory was a key topic among prominent tech bosses at the Web Summit conference in Lisbon, Portugal. Many attendants said they’re unsure of what to expect from the U.S. president-elect, citing this unpredictability as a core challenge at present.
Andy Yen, CEO of Swiss VPN developer Proton, says Europe should echo American protectionism and adopt a more “Europe-first” approach to technology — in part to reverse the trend of the last two decades, during which much of the Western world’s most important technologies, from web browsing to smartphones, have become dominated by a handful of large U.S. tech firms.
VPNs, or virtual private networks, are services that encrypt data and mask a user’s IP address to hide browsing activity and bypass censorship.
“It’s time for Europe to step up,” Yen told CNBC on the sidelines of Web Summit. “It’s time to be bold. It’s time to be more aggressive. And the time is now, because we now have a leader in the U.S. that is ‘America-first,’ so I think our European leaders should be ‘Europe-first.'”
One key push for the past decade from the European Union has been to take legal action and introduce tough new regulations to tackle the dominance of large technology players, such as Google, Apple, Amazon, Microsoft and Meta.
As Trump prepares to come into power for a second mandate, concerns have now mounted that Europe might reel in its tough approach to tech giants out of fear of retaliation from the new administration.
US Big Tech playing ‘extremely unfairly’
Proton’s Yen, for one, urged the EU not to water down its attempts to rein in America’s tech giants.
“Europe has been thinking in a very globalist mindset. They’re thinking we need to be fair to everybody, we need to open our market to everybody, we need to play fair, because we believe in fairness,” he told CNBC.
“Well, guess what? The Americans and the Chinese didn’t get the memo. They have been playing extremely unfairly for the last 20 years. And now they have a president that is extremely ‘America-first.'”
Mitchell Baker, former CEO of American open internet non-profit Mozilla Foundation, said the EU’s DMA has led to meaningful changes for the Firefox browser, with activity increasing since Google implemented a “choice screen” on Android phones that enables users to select their search engine.
“The change in Firefox new users and market share on Android is noticeable,” Baker said. “That’s nice for us — but it’s also an indicator of how much power and centralized distribution that these companies have.”
She added, “This change in usage because of one choice screen isn’t the full picture. But it is an indicator of the kind of things that consumers can’t choose and that businesses can’t build successfully because of the way the tech industry is structured right now.”
Thomas Plantenga, CEO of Lithuania-headquartered used clothing resale app Vinted, urged Europe to take the “right choices” to ensure the continent can “fend for ourselves” and does not get “left behind.”
“If you look very realistically at what countries do, they try to take care of themselves and they try to form coalitions to be stronger themselves, and as a coalition be stronger,” Plantenga told CNBC in an interview. “We have a lot of very talented, well-educated people.”
“We need [to] ensure that we can take care of our own safety, that we can take care of our own energy, that we ensure to keep on investing in our education and innovation so that we can keep up with the rest [of the world],” he stressed. “If we don’t, then we’ll be left behind. In every collaboration, it’s always a trade. And if we don’t have much to trade, we become weaker.”
‘AI sovereignty’ now a key battleground
Another theme that attracted much chatter on the ground at Web Summit was the idea of “AI sovereignty” — which refers to countries and regions localizing critical computing infrastructure behind AI services, so that these systems become more reflective of regional languages, cultures and values.
With Microsoft becoming a key player in AI, concerns have surfaced that the maker of the Windows operating system and Office productivity tools suite has secured a dominant position when it comes to foundational AI tools.
The tech giant is a key backer behind ChatGPT maker OpenAI, whose technology it also heavily uses in its own products.
For some startups, Microsoft’s decision to embrace AI has resulted in harmful, anti-competitive effects.
Last year, Microsoft hiked the fees it charges search engines to use its Bing Search APIs, which allow developers access to the tech giant’s backend search infrastructure — in part because of higher costs attached to its AI-powered search features.
“They’re gradually reducing our revenue — we’re still relying on them — and that reduces our capacity to do things,” Christian Kroll, CEO of sustainability-focused search engine Ecosia, told CNBC. “Microsoft is a very fierce competitor.”
CNBC has reached out to Microsoft for comment.
Ecosia recently partnered with fellow search provider Qwant to build a European search index and reduce dependence on U.S. Big Tech to deliver web browsing results.
Meanwhile, the European Union’s AI Act, a landmark artificial intelligence law with global implications, introduces new transparency requirements and restrictions on companies developing and using AI.
The laws are likely to have a big impact on predominantly U.S. tech firms, since they’re the ones doing much of the development of — and investment in — AI.
With Trump set to come into power, it’s unclear what that could mean for the global AI regulatory landscape.
Shelley McKinley, chief legal officer of code repository platform GitHub, said she can’t predict what Trump will do in his second term — but that businesses are planning for a range of different scenarios in the meantime.
“We will learn in the next few months what President-elect Trump will say, and in January we will start seeing some of what President Trump does in this area,” McKinley said during a CNBC-moderated panel earlier this week.
“I do think it is important that we all, as society, as businesses, as people, continue to think about the different scenarios,” she added. “I think, as with any political change, as with any world change, we’re still all thinking about what are all of the scenarios we might operate.”
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