7-Eleven Lays Off 880 Corporate Employees in Restructuring
7-Eleven has eliminated about 880 corporate jobs in the U.S., CNBC reported. The Dallas-headquartered company’s Irving, TX and Enon, OH, support centers were impacted, as well as field support roles. The workforce reduction comes roughly one year after the convenience store chain completed its $21 billion acquisition of rival Speedway.
7-Eleven cuts nearly 900 jobs
Another major employer in the United States has made layoffs ahead of a potential recession.
7-Eleven has eliminated about 880 corporate jobs in the U.S., CNBC reported. The Dallas-headquartered company’s Irving, TX and Enon, OH, support centers were impacted, as well as field support roles. The workforce reduction comes roughly one year after the convenience store chain completed its $21 billion acquisition of rival Speedway.
“As with any merger, our integration approach includes assessing our combined organization structure,” a 7-Eleven spokesperson told CNBC. “The review was slowed by COVID-19, but is now complete, and we are finalizing the go-forward organization structure. These decisions have not been made lightly, and we are working to support impacted employees, including providing career transition services.”
7-Eleven operates more than 13,000 locations across North America, according to its parent company’s most recent annual filing. The company is owned by the Japanese retail conglomerate Seven and i Holdings, which was pressured by San Francisco-based investment company ValueAct Capital earlier this year to consider strategic alternatives following the merger, CNBC reported.
An anticipated recession has Silicon Valley trembling. More than 300 start-ups have laid off more than 50,000 workers since the start of the year, according to Layoffs.fyi, which tracks cuts in the tech industry.
Earlier this week, Bloomberg News reported that Apple plans to slow hiring and spending growth next year. Last week, Google told employees that it’ll be “slowing down the pace of hiring for the rest of the year,” according to an internal memo by CEO Sundar Pichai obtained by The Verge. Pichai said the Mountain View, CA-based company isn’t freezing hiring entirely; it’ll still hire for “engineering, technical and other critical roles.” But the pullback will mean “pausing development and re-deploying resources to higher priority areas,” according to the memo.
The memo came on the heels of Meta, formerly known as Facebook, giving engineering managers a deadline to identify anyone on their team who “needs support” and report them in an internal HR system, The Information reported. “If a direct report is coasting or is a low performer, they are not who we need; they are failing this company,” wrote Maher Saba, the company’s head of engineering. “As a manager, you cannot allow someone to be net neutral or negative for Meta.”
7-Eleven Lays Off 880 Corporate Employees in Restructuring
Convenience store chain 7-Eleven has cut around 880 corporate jobs in the U.S., a year after completing its $21 billion acquisition of rival Speedway.
This shift comes as U.S. businesses have been dealing with inflation nearly across for the board for everything from rent to gas, CNBC reported Thursday (July 21). Many companies have been cutting down on hiring or conducting rounds of layoffs, both in attempts to cut down on expenses.
7-Eleven, owned by Japanese retail conglomerate Seven and i Holdings, has seen pressure from investment company ValueAct Capital to look at alternative strategies, per the report. The company has also been dealing with higher gas prices, which have resulted in some consumers not filling up their vehicles as often.
“As with any merger, our integration approach includes assessing our combined organization structure,” a 7-Eleven spokesperson told CNBC in an emailed statement. “The review was slowed by Covid-19 but is now complete, and we are finalizing the go-forward organization structure.”
That source also said the cuts came down to certain jobs at the company’s Irving, Texas, and Enon, Ohio, support centers, along with field support roles.
7-Eleven bought Speedway as a way to beef up presence in the U.S., particularly in the Midwest and on the East Coast. However, the Federal Trade Commission has said that the takeover of the Speedway subsidiary from Marathon was against federal antitrust laws, which resulted in 7-Eleven selling more than 200 retail outlets.
PYMNTS wrote recently that 7-Eleven has been working with up-and-coming brands to give them opportunities to grow, having partnered with the Brands with Heart initiative.
Brands with Heart reportedly gives brands a way to introduce their products inside 7-Eleven locations, along with Speedway and Stripes, around the country. The program works with companies creating snacks, beverages, confections and healthier items at varying stages of development.
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