Approximately 880 corporate jobs at convenience store chain 7-Eleven have been cut, according to CNBC, about a year since the company acquired rival C-store and gas station business Speedway for $21 billion.
the franchisee is owned by the Japanese retail conglomerate Seven & i Holdings, whose strategy was being scrutinized by San Francisco investment firm ValueAct Capital earlier this year. The company urged Seven & i to narrow its focus to 7-Eleven, and it supported a new slate of directors for the Japanese firm’s board.
In recent months, businesses in the U.S. have been experiencing inflation on everything from fuel to labor to rent, all of which are affecting their profits. Employers are now either holding off on hiring or are laying off workers, as they are trying to find ways to save money.
Gas prices have also gone up at 7-Eleven, causing some consumers to hold off on filling up their tanks, or buying extra goods from its retail outlets.
In North America, the chain operates more than 13,000 stores, according to its parent company’s latest annual report. Roughly 9,500 of those stores operate under the 7-Eleven brand.
There is no immediate word on how many employees the company has in the U.S.
“As with any merger, our integration approach includes assessing our combined organization structure,” a spokesperson for 7-Eleven wrote to CNBC. “The review was slowed by Covid-19 but is now complete, and we are finalizing the go-forward organization structure.”
Several positions were cut at the support centers in Irving, Texas, and Enon, Ohio, as well as in the field. 7-Eleven is based in Irving, while Speedway is in Enon.
“These decisions have not been made lightly, and we are working to support impacted employees, including providing career transition services,” a company spokesperson said.
The purchase of Speedway by 7-Eleven was designed to increase its presence in the U.S., especially in the Midwest and on the East Coast. Marathon’s takeover of its Speedway subsidiary, however, was alleged to have violated federal antitrust laws by the Federal Trade Commission. A court later ordered 7-Eleven to sell 200 of its retail outlets to resolve the matter.
The company has been testing its so-called “Evolution” stores, which offer customers coffee drinks, local foods, and a mobile checkout option. Dallas became its ninth location in the country in June.