United Natural Foods Inc. (UNFI, Providence, RI) laid off 277 workers from its billing, invoice and payroll department at its office in Phoenix, AZ.
UNFI developed a three-year plan that aims to “increase customer and supplier value, expand margins, generate free cash flow and reduce leverage,” the company said. In its fourth quarter earnings report for 2024, UNFI reported a net sales increase of 2.1 percent year over year and a gross profit rise of 15.5 percent to $1.1 billion.
This is now the second round of layoffs in the past several months. In June, UNFI closed its transportation department in Harrisburg, PA, laying off 87 employees.
The company stated, “At UNFI, we’re executing a new strategy focused on creating shared value and more efficiently serving our retailer and supplier partners. Recently, we took steps to transfer a portion of our highly transactional billing, invoicing and payroll tasks, as well as contact centers, to a third-party business services and technology services provider. We believe this change will allow us to more efficiently and effectively meet the long-term needs of the partners we serve.”
For more information, visit www.unfi.com.