Walmart is letting go of 200 employees from its corporate ranks
In a reorganisation effort, sources familiar with the issue say Walmart Inc. is slashing hundreds of corporate roles, one week after the retail giant warned of decreasing profitability.
When the store began informing its Bentonville headquarters and other corporate offices of this restructure that affects merchandising, global technology, and real-estate teams the people reported that they had begun to receive notifications from the company. According to one of the employees interviewed, there will be a total of 200 layoffs.
It was verified by a Walmart spokesperson that as part of the company’s restructuring, some functions were being terminated. However, the spokesperson added that Walmart was also investing in other areas and creating new jobs as well.
Earlier this month, Walmart issued a warning that its profits would be lower in the current quarter and fiscal year due to the need to mark down stock that has built up in its stores. Higher food and fuel prices, according to the company, are forcing Americans to spend less on other, more profitable categories.
Shopping habits shifted away from items in high demand throughout the pandemic, and Walmart was caught off surprise as many other stores were. As a result of supply-chain delays, several products were overstocked as shoppers lost interest. A spike in inventory levels was one of the key takeaways from Target’s most recent quarter, which was released in June. As a result of a decline in consumer electronics purchases, Best Buy Co. has lowered its sales and profit goals.
In addition to the thousands of hourly workers employed by Walmart, the company employs tens of thousands of people in corporate positions. As of Jan. 31, Walmart has 2.3 million employees throughout the world, including 1.7 million in the United States.
A few prominent firms are reducing hiring or laying off employees, despite the overall strength of the American employment market. Ford is prepared to lay off tens of thousands of white-collar workers, while Microsoft and Facebook’s parent company, Meta Platforms Inc., have reduced their workforces.
On Friday, the government will reveal data on the state of the U.S. job market for July. It is expected that the July jobs report would show a gain of over 250,000 workers, down from a gain of 372,000 in June, according to Wall Street Journal economists surveyed this week.