Walmart to Lay Off 2,300 Sam's Club Employees
Walmart has announced that it is laying off up to 2,300 employees from Sam's Club, its members-only, bulk sales outlet stores.
The bulk of the layoffs will be made up of lower management. Walmart said in a press release that the move to cut assistant managers is an effort to make the company "more nimble." Other positions, such a telephone attendants, will also be eliminated in an effort to bring down costs.
Several US retailers slashed fourth-quarter profit forecasts after holiday sales were disappointing and by some reports, Walmart itself is said to have the worst gross profit margin of its peers.
This, on top of reports of credit card data breaches spreading through the retail sector, has US retailers in a state of alarm.
Sam's Club employs about 116,000 employees nationwide and, according to the company's fact sheet, is by itself the eight largest retailer in the nation by annual net sales.
The discount chain has 621 stores with its first opened in Midwest City, Oklahoma, in 1983.
The layoffs will affect about four employees per store. Laid off employees will be allowed 60 days to find a berth at another Walmart store and, if unsuccessful, they will be eligible for a severance package.
Despite this adjustment, Sam's Club plans on opening 15 new stores in 2014.
In its press release, Sam's Club noted that the layoffs affect two percent of its workforce.