Walmart Inc. is joining the ranks of Macy’s and L Brands in eliminating hundreds of corporate jobs in order to cut costs.
Employees in the mega-retailer’s store planning, logistics, and real estate units have reportedly received pink slips, reported Bloomberg Thursday:
Some of those affected were told in person, while others learned their fate over a Zoom call, said the people, who asked not to be identified because they aren’t authorized to speak publicly. Conversations with those impacted will continue throughout the week. Those who lose their jobs will be paid until the end of January, when Walmart’s fiscal year ends and annual bonuses get doled out, according to one of the people.
John Furner, director of Walmart’s U.S. operations, told Bloomberg that more information about the company’s restructuring would be forthcoming after communications with associates are completed.
“We are continuing on our journey to create an omni-channel organization within our Walmart U.S. business and we’re making some additional changes this week,” a spokesperson said, adding that efforts will seek to boost “innovation, speed and productivity.”
While Walmart’s sales during the coronavirus pandemic have surged, it is no longer opening new stores in the United States, and has been streamlining its operations for several years. Recently, it closed down its Jet.com e-commerce unit.
According to the report, Walmart’s stock climbed 10% this year through Wednesday, ahead of the S&P 500 index. However, it fell 1% to $129.38 per share Thursday morning in New York.
Layoffs are occurring in merchandizing, transportation, human resources, and product design, Bloomberg was told.
L Brands Inc., which owns Victoria’s Secret and Bath & Body Works, also announced this week it would be laying off 850 office workers, about 15 percent of its corporate staff.
Last month, Macy’s Inc. announced the elimination of 3,900 corporate and management positions as well.