According to Business Insider, Amazon is launching “Project Cremini” to fully integrate Whole Foods’ entire 100,000-plus workforce into Amazon’s core business structure by next year. The three-year process will move all corporate and frontline employees to Amazon’s internal systems for performance reviews, workplace tools, and paychecks coming directly from Amazon. This marks the most significant move yet from Whole Foods CEO Jason Buechel, who now oversees Amazon’s entire grocery business and is pushing a “One Grocery” mindset. The integration follows Amazon’s grocery and everyday essentials business generating over $100 billion in gross merchandise sales in the past year, with that category growing nearly twice as fast as others in the US. Amazon also estimates that consolidating vendor management for its 16 largest food suppliers will generate at least $94 million in additional profit.
The end of an era
This is basically the final nail in the coffin for Whole Foods as an independent entity. Remember when Amazon bought them back in 2017 for $13.7 billion? They’ve been dancing around full integration for years, but now the gloves are off. And here’s the thing – this isn’t just about corporate staff anymore. We’re talking about every single Whole Foods employee, from the cheese counter to the checkout lanes, becoming Amazon employees in every practical sense.
Jason Buechel is clearly the driving force here. Since getting promoted to oversee all of Amazon’s grocery business earlier this year, he’s been pushing this “unified employee experience” hard. He even used that weird bird migration metaphor at an internal meeting – saying birds travel 70% faster when they fly together. I mean, come on. But the message is clear: the experimentation phase is over, and it’s time for full assimilation.
Grocery wars heat up
Amazon’s grocery business is massive – serving 150 million customers with nearly 3 million items – but they’ve been struggling to figure out the physical retail piece. The Fresh stores haven’t been the home run they hoped for, and Whole Foods has faced its own challenges. So now they’re throwing everything at the wall: consolidated vendor teams, the “Fusion” delivery service that pulls from both Fresh and Whole Foods warehouses, even testing stores that mix organic kale with Tide detergent.
What’s really interesting is how they’re positioning this. They’re talking about making grocery shopping “easier, faster, and more affordable” – which sounds great for customers but probably means squeezing margins even tighter. And when Amazon starts talking about eliminating $94 million in inefficiencies, you know someone’s getting squeezed. Probably both suppliers and employees.
Employee culture clash
Remember when Whole Foods employees were worried about losing their brand’s identity and values? Yeah, that ship has sailed. The tension between Amazon’s data-driven efficiency and Whole Foods’ more… let’s call it “granola” culture… has been brewing since day one. Now with everyone moving to Amazon’s performance review systems and pay structures, that culture clash is about to become institutional.
And get this – some Whole Foods employees can now apply for Amazon roles without going through the standard interview process. That’s either a generous internal mobility program or Amazon quietly identifying who they want to keep and who they… don’t. Given Amazon’s reputation for performance management, I’m leaning toward the latter interpretation.
Where this is headed
Andy Jassy is clearly all-in on grocery now. When the CEO starts highlighting $100 billion in grocery GMV on earnings calls, you know it’s a strategic priority. But here’s what fascinates me – Jassy believes they’re changing the “weekly grocery stock-up” tradition. He’s betting that Amazon’s model of frequent, smaller purchases will beat the traditional big weekly shop.
Basically, Amazon is betting that convenience will trump everything else in grocery. The question is whether completely absorbing Whole Foods into the Amazon machine will deliver that convenience while maintaining whatever made people love Whole Foods in the first place. My prediction? We’re about to find out just how much “Amazonification” the average grocery shopper will tolerate.
