Amazon Layoffs: Hundreds Lose Jobs After 87 Pop-Up Stores Close Down

Amazon.com is closing all 87 of its experimental Amazon Pop-Up stores and discontinuing the program to expand its Amazon 4-star premium stores and Amazon Books.

It announced the closure of all its pop-up locations, including those at malls and those located at Kohl's, and Whole Foods Market stores. The pop-ups, which were first set-up five years ago, will all be gone by April 29.

Amazon’s small pop-ups are a place where customers interested in Amazon's gadgets like the Echo or Fire TV and other smart gadgets could get hands-on time to see how they work before purchasing.

An undetermined number of employees will be laid off, but will receive severance as long as they stay until the stores close. It’s also uncertain if these employees will be able to transfer to newly opened Amazon 4-star stores or to Amazon Books.

"We work to find opportunities within the company for employees," claims an Amazon spokesperson who refused to provide further details, however.

Doing away with its pop-ups is part of a change in Amazon’s physical strategy.

"After much review, we came to the decision to discontinue our pop-up kiosk program, and are instead expanding Amazon Books and Amazon 4-star, where we provide a more comprehensive customer experience and broader selection," said Amazon in a statement.

Kohl’s Corporation CEO Michelle Gass said the Amazon pop-ups in its premises will shift to a more traditional wholesale model.

"It was an experiment and one of the things were really driving in the culture these days is trying lots of things, so we tried the shop in the shop idea and what we're seeing is we're actually seeing great results through a wholesale relationship," said Gass.

"We're actually going to bring it into a dedicated space in over 200 stores ... with a broader assortment of Amazon devices, but it will be more on a self-serve environment, which is how our customers are used to shopping us."