Amazon to Lay Off 871 Employees, Close 4 New Jersey Grocery Stores

Amazon to Lay Off 871 Employees, Close 4 New Jersey Grocery Stores

Amazon has announced significant changes to its grocery operations in New Jersey, leading to potential layoffs and store closures. The company plans to close all four of its Amazon Fresh grocery stores in the state, with a total of 871 employees facing layoffs effective April 28.

Details of the Layoffs and Store Closures

The following locations will be affected by the closures:

  • Amazon Fresh in Eatontown
  • Amazon Fresh in Lodi
  • Amazon Fresh in Paramus
  • Amazon Fresh in Woodland Park

The layoffs will impact employees across various counties:

  • Passaic County: 240 layoffs
  • Bergen County: 417 layoffs
  • Monmouth County: 141 layoffs
  • Hudson County: 44 layoffs
  • Statewide total: 29 layoffs

While these numbers are linked directly to the Amazon Fresh locations, it remains uncertain if layoffs will also encompass related distribution and warehouse operations.

Broader Implications for Amazon’s Grocery Strategy

This decision is part of Amazon’s larger plan to close 72 grocery stores across the country. The company is redirecting its grocery business towards online delivery and the expansion of Whole Foods Market locations. On the same day, Amazon reported a nationwide layoff of 16,000 employees.

Amazon officials noted that certain Fresh and Go locations might be converted into Whole Foods Market outlets. Presently, New Jersey is home to 25 Whole Foods locations, with four more planned for the near future.

Future Developments

Although several physical grocery stores are being closed, Amazon’s online grocery services will continue. Customers can still shop Amazon Fresh online where the service is available. The company remains committed to improving the customer experience and exploring new store concepts.

In addition, Whole Foods Market plans to open more than 100 new stores in the coming years, expanding its Smaller Stores Daily Shop format, which emphasizes convenience with grab-and-go options.

Amazon stated its intent to support affected employees in finding new roles within the company. This latest restructuring reflects the ongoing evolution in the grocery sector, emphasizing online shopping and efficient service models.