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Walmart slashes hundreds of corporate jobs after falling profit warnings
https://www.whatjobs.com/news/usa/us-employment-news/walmart-slashes-hundreds-of-corporate-jobs-after-falling-profit-warnings
By Nithya Bose in US Employment News, posted August 4, 2022
Walmart will slash around 200 corporate workers in a company-wide restructure, just a week after the retailer warned of a fall in profits.
The retail giant has begun informing staff at its headquarters in Bentonville, Arkansas, as well as other corporate offices, about the the plan.
The move affects several departments including the merchandising, global technology, and real-estate teams.
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A Walmart representative confirmed some roles are being cut.
However, they also mentioned the company is putting money into other areas to create new jobs.
Walmart warned last week its profits will fall in the current quarter and fiscal year.
This is due to the need to mark down clothing and other products that had accumulated in its stores.
The company said higher food and gasoline prices were forcing US consumers to spend less on other areas.
Walmart was one of several retailers taken by surprise in the spring as shoppers changed their spending away from things that had been in high demand during the pandemic.
Supply chain issues, which meant items arriving late, have also resulted in over-stocking as demand declined.
Walmart's rival also Target issued a profit warning in June after reporting quarterly data that, like Walmart, indicated an increase in inventory levels.
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Another retailer, Best Buy lowered its sales and profit targets last week, citing a drop in consumer spending on gadgets.
As of January 31, 2018, Walmart had 2.3 million people globally, including 1.7 million in the United States.
While the overall job market in the country has been solid, a few other significant firms are slowing recruiting or eliminating some positions.
Ford Motor is planning to lay off thousands of white-collar staff, while technological behemoths like Microsoft and Facebook parent Meta have taken a step back.
When the government reports July employment data on Friday, investors will receive another update on the state of the US labor market.
Source: The Wall Street Journal
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