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Convenience store chain 7-Eleven has cut 880 jobs in the United States, CNBC has learned, roughly a year after it completed its acquisition of rival C-store business Speedway.
7-Eleven is owned by the Japanese retail conglomerate Seven & i Holdings, which came under pressure earlier this year from the San Francisco-based investment company ValueAct Capital to consider strategic alternatives. ValueAct had been urging Seven & i to narrow its focus to 7-Eleven, and it backed a new slate of directors on the Japanese company’s board.
More recently, businesses in the U.S. have been grappling with inflation on everything from fuel to labor to rent, which are weighing on profits. Many companies are now either hitting the breaks on hiring or beginning to lay people off, as they look for opportunities to slash expenses.
7-Eleven operates more than 13,000 locations across North America, according to its parent company’s most recent annual filing, roughly 9,500 of which are under its namesake banner.
“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.”
The person said the cuts were of certain jobs in the company’s Irving, Texas, and Enon, Ohio, support centers, as well as field support roles.
“These decisions have not been made lightly, and we are working to support impacted employees, including providing career transition services,” the company spokesperson said.
This story is developing. Please check back for updates.