UNFI lays off close to 300 workers as it zeroes in on three-year plan

United Natural Foods Inc. has laid off billing, invoice, and payroll personnel at its Phoenix, Ariz. office.

The wholesale distributor of natural, organic, and specialty foods confirmed the layoffs to Supermarket News via email.

UNFI, based in Providence, R.I., would not confirm the exact number of layoffs, but a source told Supermarket News it was 277 workers.

“At UNFI, we’re executing a new strategy focused on creating shared value and more efficiently serving our retailer and supplier partners,” Charles Davis, spokesperson for UNFI, said in a statement to Supermarket News. “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.”

UNFI developed a three-year plan earlier in the year that aims to increase customer and supplier value, expand margins, generate free cash flow, and reduce leverage.

“We are confident that our new strategy and multiyear financial objectives, informed by our ongoing board and management-led financial review, will continue to drive accelerating performance and create sustainable value for our customers and suppliers alongside our shareholders,” UNFI CEO Sandy Douglas said during a fourth quarter earnings call on Oct 1.

The wholesale distributor has now made two rounds of layoffs over the past four months.

UNFI closed its transportation department at its Harrisburg, Pa., distribution center in June. Eight-seven positions were eliminated.

The latest round of layoffs comes at the heels of a successful fourth quarter earnings report.

UNFI’s net sales increased 2.1% year over year and gross profit rose 15.5% at $1.1 billion.