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Convenience store chain 7-Eleven has cut roughly 880 U.S. corporate jobs, CNBC has learned, about a year after it completed its $21 billion acquisition of rival C-store and gas station Speedway.
7-Eleven is owned by Japanese retail conglomerate Seven & i Holdings, which earlier this year came under pressure from San Francisco-based investment firm ValueAct Capital to consider strategic options. ValueAct had urged Seven & i to narrow its focus to 7-Eleven, and it supported a new slate of directors on the Japanese company̵[ads1]7;s board.
Recently, businesses in the United States have struggled with inflation on everything from fuel to labor to rent, weighing on profits. Many companies are now either taking a hiatus from hiring or starting to lay off people, as they look for opportunities to cut costs.
7-Eleven has also struggled with higher prices at petrol pumps, which has led to some consumers waiting to fill up the tank or buy extra goods in the shops.
7-Eleven operates more than 13,000 locations across North America, according to its parent company’s most recent annual filing, of which about 9,500 are under its name.
The company did not immediately confirm how many employees it has in the United States
“As with any merger, our integration approach includes evaluating our combined organizational structure,” a 7-Eleven spokesperson told CNBC in an emailed statement. “The review was slowed by Covid-19, but has now been completed, and we are finalizing the organizational structure going forward.”
The person said the cuts were to certain jobs at the company’s support centers in Irving, Texas, and Enon, Ohio, as well as field support roles. 7-Eleven is headquartered in Irving, and Speedway is based in Enon.
“These decisions have not been taken lightly and we are working to support affected employees, including providing career transition services,” the company spokesperson added.
7-Eleven purchased Speedway to strengthen its presence in the United States, particularly in the Midwest and along the East Coast. However, the Federal Trade Commission charged that the takeover of Marathon’s Speedway subsidiary violated federal antitrust laws. 7-Eleven was later ordered to sell over 200 outlets to settle the case.
In the meantime, 7-Eleven has tested so-called “Evolution” stores that offer customers special coffee drinks, local grub and functions such as mobile checkout. It opened its ninth in the country, in Dallas, in June.