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Will job cuts affect Whole Foods' image as an employer?

Written by George Anderson

Whole Foods announced plans yesterday to cut 1,500 store-level jobs over the next two months, 1.6 percent of its workforce, as part of a plan to invest in technology and reduce the prices it charges its customers.

The chain has always sold itself to prospective employees as a retail employer of choice, offering above market wages, competitive benefits, opportunities for professional growth and an employee-friendly workplace. Will the announcement of job cuts — particularly as the company invests in non-human assets — cause workers and prospective employees to view Whole Foods in a less favorable light?

To be sure, Whole Foods has sought to minimize any negative imagery tied to its announcement. In fact, a statement posted on the company's website makes it sound as though almost no one will really lose their job.

The chain "anticipates many of the reductions to be managed through natural attrition and expects a significant percentage of affected team members will find other jobs from the nearly 2,000 open positions across the company or via new jobs created from the more than 100 new stores in development."

Whole Foods
Photo: RetailWire

Clearly, Whole Foods has made the calculation that the announced job cuts are necessary in light of its continuing efforts to rid itself of its "Whole Paycheck" image while facing increased competition from conventional grocers as well as a host of chains targeting the natural and organics market.

Are your store managers spotting money-making opportunities?

According to reviews on Glassdoor, 72 percent of current and former Whole Foods employees would recommend the company to a friend as a place to work. Seventy-nine percent approve of the company's co-CEOs, Walter Robb and John Mackey.

A review on Glassdoor posted yesterday by a former employee had the headline, "Use to be great." Among the cons listed by the poster were, "Down sized, last minute changes constantly." The poster's advice to management: "Communicate with team members."

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