7-Eleven cuts 880 jobs as part of its restructuring
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Convenience store chain 7-Eleven has cut about 880 corporate jobs in the United States, CNBC has learned, about a year after completing its $21 billion acquisition of rival C-store and gas station Speedway.
7-Eleven is owned by Japanese retail conglomerate Seven & i Holdings, which came under pressure earlier this year from San Francisco-based investment firm ValueAct Capital to consider strategic alternatives. ValueAct had urged Seven&i to focus on 7-Eleven, and it backed a new slate of directors on the Japanese company’s board.
More recently, businesses in the United States have been grappling with inflation on everything from fuel to labor to rent, which is weighing on profits. Many companies are now putting the brakes on hiring or beginning to lay off, as they look for opportunities to cut spending.
7-Eleven has also had to deal with higher prices at gas pumps, leading some consumers to delay filling the tank or purchase additional products at its retail stores.
7-Eleven operates more than 13,000 locations in North America, according to its parent company’s latest annual report, of which about 9,500 are under its eponymous banner.
The company did not immediately confirm how many employees it has in the United States.
“As with any merger, our integration approach includes evaluating our combined organizational 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 future organizational structure.”
The person said the cuts were to some support center jobs at Irving, Texas and Enon, Ohio, as well as field support positions. 7-Eleven is headquartered in Irving and Speedway is based in Enon.
“These decisions were not taken lightly, and we are working to support affected employees, including providing career transition services,” the company spokesperson added.
7-Eleven purchased Speedway to strengthen its presence in the United States, particularly in the Midwest and along the East Coast. The Federal Trade Commission, however, accused the takeover of Marathon’s Speedway subsidiary of violating federal antitrust laws. 7-Eleven was later ordered to sell over 200 outlets to settle the case.
7-Eleven has meanwhile tested so-called “Evolution” stores that offer customers special coffee drinks, local dishes and features such as mobile payment. It opened its ninth in the country, in Dallas, in June.