Many big companies have been expanding lately, which has helped keep the unemployment rate down, but Whole Foods (WFM) is trying hard to start cutting down.
The big reason for this is that they are starting to get desparate to cut costs: their popular nickname is “Whole Paycheck”, since shopping there for a full load of groceries can drain a full week’s of wages fairly quickly. The brand’s popularity grew very quickly over the last several years as a bastion of organic, non-GMO groceries, so they could get away with higher prices for a more unique offering. However, lately smaller speciality shops offering a smaller selection, but lower prices, have been siphoning off market share, while bigger grocery chains have started expanding their offerings of organic foods, further eroding the brand’s popularity.
These job cuts are aimed mostly at back-end staff, which the firm intends to use the wage savings for a series of technology upgrades.
Click Here to trade WFM on HowTheMarketWorks!