According to the latest reports, Walmart is all set to lay off as many as 1,500 employees in the next few days as part of a restructuring program. The company is currently the source of income for over 1.6 million employees in the US. This makes it one of the largest private employers in the United States of America. The employees getting laid off are just a fraction of Walmart’s diverse workforce. Still, the news has severely impacted the employees and their sense of job security. If you are someone who wants to know more about the Walmart layoffs, the following article is for you.
Walmart Set To Initiate Downsizing at Several Headquarters
According to what the reports are suggesting, Walmart is all set to initiate downsizing in some of the major headquarters, like Bentonville and Arkansas. The layoffs under the reconstruction plan are going to impact employees who are a part of Walmart’s technology team. Those operating in e-commerce fulfillment in U.S. stores and their advertising business, Walmart Connect, are also going to suffer. The number of employees who’ll suffer the impact of this downsizing process is 1,500. Reports from several sources about the layoffs are surfacing on the internet. However, Walmart itself has not yet confirmed the layoffs.
Why Is Walmart Initiating Layoffs This Year?
According to the memo that Reuters has obtained, the company aims to accelerate its progress in delivering the experiences that are going to define the future of retail. Therefore, the memo suggests that Walmart believes it must sharpen its focus. According to the reports, around 60% of the company’s imports come from China, which is currently amid a trade war with the US. Walmart previously announced that the tariffs may result in a rise in its prices. WSJ suggests that the layoffs are being initiated with the objective of trimming the company’s expenses and speeding up the decision-making.
What Did The Letter To Associates Of Walmart Say?
According to the reports, the Global Chief Technology Officer, Suresh Kumar, and the President and CEO of Walmart U.S, John Furner, on May 21, sent a letter to their associates. They described the downsizing as a part of building the future. The memo also stated that the company has identified some opportunities for removing the layers of complexity from its operations. It also added that Walmart is going to eliminate some roles, while new roles will also be included. The company will make sure the new roles added align with their growth strategy and business priorities.
How Is Walmart Performing Financially As Of Now?
According to what the reports suggest, Walmart is definitely performing much better than its other retail competitors. The company reported it witnessed a 2.5% increase in its revenue during the first quarter following the price hike announcement. The stock prices of Walmart saw a slight change during the late trading hours in New York. Walmart’s stock price witnessed a 6.7% rise this year to the Wednesday, 21st of May, close.
