That is partly because of hefty investments Wal-Mart has made in e-commerce as well as higher wages for hourly workers. The stores will reopen by November, and the retailer said it is encouraging former workers to reapply for their jobs. Amid such a scenario, Wal-Mart reportedly announced to cut jobs of around hundreds of employees, including senior and department managers, at its headquarters. Target laid off 1,700 employees this year, largely at its headquarters in Minneapolis.
On a recorded call recently to discuss the retail giant’s quarterly results, McMillon said: “For the back half of the year, we will manage these items closely with a continued commitment to efficiency, cutting costs where appropriate, even in a period of investment”.
Potential layoffs at the home office were first reported by the Arkansas Democrat-Gazette in July.
Simultaneously, it has increased spending on e-commerce in order to boost sales.
Job search assistance will also be provided as part of the benefits package, said another Walmart spokesperson. Per Wall Street Journal, the job cuts are expected to begin next week.
Shares of Wal-Mart slid 1% in morning trading amid a broader market selloff.
Among the hardest hit by the recession were lower income families, which makes up a huge slice of Wal-Mart’s customer base.
“We are focused on taking care of affected associates”, a Walmart spokesperson said.
“After months of evaluation, we’ve concluded there is an opportunity to better position our Home Office teams to move with speed and goal”, Mr. McMillon wrote in the memo. McMillon and other top executives are due to present their strategy for the company at an annual meeting with analysts and investors later this month in New York.