Whole Foods to Cut 1500 Jobs

“Whole Foods’ strong cash position, strong operating cash flows, strong brand equity, and long-term unit growth potential could attract the attention of an outsider (e.g., activist) – and, an outsider could be the force needed to enact change at Whole Foods”, the firm wrote. It anticipates workers whose jobs are cut will find other jobs from the nearly 2,000 open positions across the company, or from new jobs that’ll be created by more than 100 new stores in development.

Whole Foods Market plans to eliminate 1,500 jobs to reduce costs and fight back against rivals that are undercutting its prices.

On July 29, 2015, after the close of trading, the organic grocer released lower-than-expected quarterly earnings and fourth-quarter guidance, which the company attributed in part to the New York City Department of Consumer Affairs’ allegations that accuses the Company of a long running scheme to defraud Whole Foods shoppers through mislabeling product weights.

Whole Foods did not immediately respond to CNNMoney’s request for comment.

Whole Foods Market says it is slashing more than 1% of its workforce in an effort to lower prices for its customers and invest in technology upgrades. The stock plunged 40% over the last six months as the company missed analyst forecasts for sales and profit. Darrah Gist, Whole Foods media contact for the Southern Region, said all of the company’s stores would be affected. The first stores are slated to open in the Los Angeles area, Portland, Houston and Bellevue, Wash.

“We have offered them several options including transition pay, a generous severance, or the opportunity to apply for other jobs”, co-CEO Walter Robb said in a statement.