There are about 18,000 people who work at the headquarters Bentonville, Arkansas. Broadly the goal of the layoffs is to align “the staff in the home office with the corporate priorities”, mainly growing e-commerce sales and improving the overall experience of shopping in USA stores, said the spokesman.
Wal-Mart reported weaker quarterly earnings in August and lowered its annual profit forecast due to various factors such as a squeeze on pharmacy margins, higher labour costs and a stronger dollar, which has crimped its overseas business. “After months of evaluation, we’ve concluded there is an opportunity to better position our Home Office teams to move with speed and goal”. “Retail is changing and we must change”, McMillon wrote in the memo obtained by The Associated Press.
And there are constant reminders that the global economy is still struggling, and that has not gone unfelt in the U.S.
Wal-Mart Stores Inc is cutting 450 jobs at its headquarters in Arkansas as part of a reorganization of the retailer’s management structure, according to an internal memo circulated to staff on Friday. Laid off employees will receive 60 days of pay, plus two weeks of pay for every year of employment with the company.
In addition to investing $1.5 billion on wage hikes for half a million store workers, the retailer is also spending billions on its e-commerce firepower.
Wal-Mart’s stock, which fell 1.2 percent to $63.53 on Friday morning, has lost a quarter of its value this year.
The layoffs are part of the retail giant’s plan to increase its competitive edge. “While hard, I believe these changes will help us become a more nimble organization that serves customers better”.
“This is an important time in our history – requiring all of us to think critically about our business and not be afraid to challenge the status quo”.
Deck said laid-off workers will likely find jobs in the local vendor community or start their own companies, and a few will move out of the area.