7-Eleven Lays Off 880 Corporate Employees in Restructuring

Convenience store chain 7-Eleven has cut around 880 corporate jobs in the U.S., a year after completing its $21 billion acquisition of rival Speedway.

This shift comes as U.S. businesses have been dealing with inflation nearly across for the board for everything from rent to gas, CNBC reported Thursday (July 21). Many companies have been cutting down on hiring or conducting rounds of layoffs, both in attempts to cut down on expenses.

7-Eleven, owned by Japanese retail conglomerate Seven & i Holdings, has seen pressure from investment company ValueAct Capital to look at alternative strategies, per the report. The company has also been dealing with higher gas prices, which have resulted in some consumers not filling up their vehicles as often.

“As with any merger, our integration approach includes assessing our combined organization 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 go-forward organization structure.”

That source also said the cuts came down to certain jobs at the company’s Irving, Texas, and Enon, Ohio, support centers, along with field support roles.

7-Eleven bought Speedway as a way to beef up presence in the U.S., particularly in the Midwest and on the East Coast. However, the Federal Trade Commission has said that the takeover of the Speedway subsidiary from Marathon was against federal antitrust laws, which resulted in 7-Eleven selling more than 200 retail outlets.

PYMNTS wrote recently that 7-Eleven has been working with up-and-coming brands to give them opportunities to grow, having partnered with the Brands with Heart initiative.

Read more: Convenience Stores Seek Hot New Brands to Dampen Threat of Delivery

Brands with Heart reportedly gives brands a way to introduce their products inside 7-Eleven locations, along with Speedway and Stripes, around the country. The program works with companies creating snacks, beverages, confections and healthier items at varying stages of development.

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