Convenience store chain 7-Eleven has laid off approximately 880 corporate colleagues in the US, according to Reuters.
In an email statement, a company spokesperson said that the retailer cut jobs at its support centres and field support operations in Irving, Texas, and Enon, Ohio.
7-Eleven’s owner, Japanese retailer Seven & i Holdings, had been under pressure from investment company ValueAct Capital to consider strategic alternatives since earlier this year.
ValueAct Capital had reportedly urged Seven & i Holdings to narrow its focus to 7-Eleven, believing this could fix its corporate governance system and more than double its share price over the coming years.
The decision to cut jobs comes roughly a year after 7-Eleven acquired rival C-store and gas station business Speedway for $21bn.
CNBC quoted a 7-Eleven spokesperson as saying: “As with any merger, our integration approach includes assessing our combined organisation structure.
“The review was slowed by Covid-19 but is now complete, and we are finalising the go-forward organisation structure.
“These decisions have not been made lightly, and we are working to support impacted employees, including providing career transition services.”
7-Eleven operates a network of more than 13,000 locations across North America, around 9,500 of which are under its namesake banner.
In June last year, the Federal Trade Commission (FTC) ordered the company to sell 293 of its stores following a deal that was deemed anti-competitive.
The FTC claimed that 7-Eleven’s acquisition of Speedway violated Section VII of the Clayton Act and Section V of the FTC Act.
It cited concerns that the deal could lower competition for the sale of fuel in 293 local markets across the US and that this was known to 7-Eleven at the time of the acquisition.
7-Eleven recently started testing drone delivery services in the South Korean town of Gapyeong.