Walmart facing the financial crisis? Plans to cut 100 company jobs for restructuring

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US retail giant, Walmart Inc, plans to cut several corporate positions within the company’s ranks as part of a corporate restructuring.

According to a Wall Street Journal report, nearly 200 Walmart employees from various departments and segments would lose their jobs. Walmart Inc had already notified its employees at the company’s Arkansas headquarters and other company offices of the job cuts.

Walmart Inc, which began as Wal-Mart Discount City in 1962, is currently based in Bentonville, Arkansas, and has more than 10,000 stores and clubs in 24 countries.

Walmart Inc spokeswoman Anne Hatfield said in an email to Reuters that the company was updating its structure and “evolving” some roles that could help provide more clarity and a better position. She also mentioned that all these restructurings were part of the strength of the company’s future.

The company, majority owned by Walton familycurrently employs more than 2.3 million workers worldwide.

The spokesperson also said the company plans to invest in sectors such as e-commerce, technology, health and wellness. Advertising sales and supply chain operations are also targets for the company, as it plans to expand from just retail. She also said that Walmart would create new roles that would help the company provide new and varied services to its customers, suppliers and the business community in general.

Another Bloomberg Business report said people who are currently employed by the company in stores and supply chain networks would not be affected by the recent job cut announcement. According to this report, the latest layoffs would primarily impact jobs related to merchandising and last-mile delivery.

Reduce forecast

A few days ago in July, Walmart Inc announced that it was cutting its second quarter earnings and EPS guidance. Worsening inflation rates as well as economic difficulties have slowed purchases in vital segments such as food and electronics. Due to a drop in demand and an increase in inventory, the company had to deliberately reduce the prices of items on the shelves, which led to losses in some cases.

This phenomenon has forced Walmart Inc to revise its forecasts for annual figures and quarterly figures. The company’s CEO, Doug McMillon at the time, said falling prices for items such as apparel and fast-moving consumer goods had severely hurt the company’s margins.

Walmart Inc is not the first company to announce job cuts, e-commerce giant Amazon Inc in its quarterly report for the second quarter said it had cut the company’s global workforce by 6%. Tesla Motors CEO Elon Musk also earlier informed the decision to cut the company’s workforce because he “felt bad” about the US economy.

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