MyWebGrocer eliminates 18 jobs in Vermont

Dan D'Ambrosio | Burlington Free Press

Show Caption Hide Caption Former MyWebGrocer employee says company shortchanged him David Tanzer alleges that MyWebGrocer shortchanged him by 25 percent by failing to pay him the full value of his shares in the company. MyWebGrocer says shareholders were treated fairly and according to their contract.

MyWebGrocer has cut 18 jobs as part of a "restructuring," the Winooski-based e-commerce company confirmed Monday evening.

"This action aligns the expertise of MyWebGrocer's workforce with its operational needs, and positions the company to reinvest and expand in support of its existing customer goals and strategic growth objectives," the company said in a statement.

The employees who were let go were offered severance packages. MyWebGrocer employs 315 people across the United States, Canada, England and Ireland.

MyWebGrocer said it was not required to file notice with the Vermont Department of Labor, because only layoffs of 50 people or more requirement notification. But the company has provided the names of affected workers to the department so the state can offer support in finding new employment.

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MyWebGrocer is owned by HGGC, LLC, a private equity firm in Palo Alto, California. The company works with grocery stores to offer online shopping.

Barry Clogan, MyWebGrocer president of retail solutions, said in a statement the world of digital grocery "is moving faster than at any time during the last 17 years."

"It is an exciting time to be working with brands and grocers to enable their digital plans," Clogan said. "In this fast moving market it is important we align our teams and capabilities to support our customers and evolve our successful ecommerce and media offering. To support that strategy we have reorganized and reallocated resources."

MyWebGrocer also cut jobs in October 2016 but declined to specify how many positions were lost, saying only there were a "few reductions."

The company was founded in Vermont in 1999 by entrepreneur brothers Rich Tarrant Jr., Jerry Tarrant and Brian Tarrant. HGGC paid about $190 million for MyWebGrocer in June 2013.

Contact Dan D’Ambrosio at 660-1841 or ddambrosio@freepressmedia.com.

