7-Eleven Cuts 880 Corporate Jobs as Part of Restructuring
Convenience store chain 7-Eleven has cut roughly 880 corporate jobs in the United States, CNBC has learned, roughly a year after it completed its $21 billion acquisition of rival C-store and gas station business Speedway. The cuts were of certain jobs in the company’s Irving, Texas, and Enon, Ohio, support centers, as well as field support roles. 7-Eleven is headquartered in Irving, and Speedway is based in Enon. 7-Eleven bought Speedway in order to beef up its presence in the U.S., particularly in the Midwest and along the the East Coast. The FTC, however, charged that the takeover of Marathon’s Speedway subsidiary violated federal antitrust laws. 7-Eleven was later ordered to sell over 200 retail outlets to settle the matter.
Total Retail's Take: With rising gas prices perhaps the most visible sign of inflation here in the U.S., many consumers are cutting back on driving, which impacts the business of convenience store chains like 7-Eleven, both for the sale of gasoline as well as products sold inside its stores. In addition to inflationary pressures, 7-Eleven is trying to integrate the recently acquired Speedway business into its organization, and there figured to be some redundancies between the two former competitors. The result of that is this week's announcement of layoffs and corporate restructuring.
“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."