In a sweeping retreat from its decade-long experiment in branded brick-and-mortar retail, Amazon has announced the permanent closure of all Amazon Fresh and Amazon Go locations across the United States. The move, aimed at streamlining the company’s grocery segment, follows the recent announcement of 16,000 corporate layoffs.
The closure will impact approximately 72 stores nationwide, including 57 Fresh supermarkets and 15 Go convenience stores. Amazon CEO Andy Jassy’s decision marks the end of the “Just Walk Out” era for its proprietary grocery brand. The company admitted it struggled to create a “distinctive customer experience with the right economic model” for large-scale expansion.
Instead, Amazon will focus its physical retail energy on Whole Foods Market, with plans to open more than 100 new locations over the next few years.
Impact on workers
According to WARN (Worker Adjustment and Retraining Notification) notices, thousands of retail associates are affected:
California faces the steepest cuts, with 23 stores closing and roughly 3,900 workers impacted. In Virginia & Washington over 1,100 positions are being eliminated across these regions as stores in Northern Virginia and Seattle shut down.
Amazon is offering employees 90 days of full pay and benefits following the announcement. While workers have the option to apply for internal transfers—specifically to Whole Foods or Amazon fulfilment centres—those who do not secure new roles by late April will receive severance packages (typically one week of pay for every six months of service).
Pay and benefits to continue until April
All Amazon Fresh workers will continue to receive their regular pay and benefits for 90 days after the closure announcement, or until April 28. Workers will be paid either the minimum wage for their job category or their average hours from the past 60 days, whichever amount is higher, BI reported citing one message.
Most Amazon Fresh stores closed to customers on February 1. However, stores in California are expected to stay open until mid-March due to a state law, as Amazon had announced earlier.
What happens after that depends on whether workers are able to find another role within Amazon.
“All affected employees will have the opportunity to apply for open roles within Amazon where available, and we’re providing career transition services to help them explore options,” an Amazon spokesperson told Business Insider.
Severance pay for those without new roles
If employees do not secure another job within Amazon by late April, they will receive severance pay. This includes one week of pay for every six months they worked at Amazon Fresh. Workers will get at least four weeks of pay and could receive up to 20 weeks, according to another message reviewed by BI.
Workers who want to transfer within Amazon were advised to look for similar roles at Whole Foods stores or Amazon grocery warehouses through the company’s internal A to Z portal.