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Walmart lays off 200 corporate staff to offset high costs, weak demand

Walmart lays off 200 corporate staff to offset high costs, weak demand

Walmart Inc. is reportedly cutting around 200 corporate jobs to cope with growing costs, weakening demand for general merchandise, and bloated inventories. The layoffs mostly include workers in merchandising and last-mile delivery.

The retailer is also planning to remove an undisclosed number of jobs from health & wellness, e-commerce, supply chain, and ad sales, cited sources with relevant information. It is worth noting here that Walmart has over 100,000 professional and management workers in the United States.

Walmart claimed that these job cuts are a part of the company’s restructuring efforts to be in a better position for stronger growth. The retail company added that it is also investing in other key areas as well as creating new roles to facilitate the increasing number of services for its suppliers and customers, thus ensuring business continuity.

Consumers in the United States were found to be less inclined on purchasing durable goods and clothing given the soaring costs of basic items and foods. Experts believe that this has compelled Walmart to cut prices on general merchandise even as its not-so-profitable grocery sales continue to rise.

The development comes after Walmart slashed its annual profit outlook for the second time within 3 months. Walmart’s shares plummeted 1% during extended trading in New York, with the retailer dropping 9.8% this year alone.

There have been growing concerns about the U.S. economy slowing down, with other corporations also looking to cut down on their workforce or halting hiring plans. For instance, Ford is gearing up to lay off around 8,000 staff while Meta revealed that it is cutting its hiring goals for engineers by 30% this year.

Even Google’s parent Alphabet informed its staff that it would slow hiring for the remainder of 2022.

Source Credits –

https://www.business-standard.com/article/international/walmart-cuts-200-corporate-jobs-as-weak-demand-bloated-inventory-weigh-122080400242_1.html

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Rashi Thakkar

Rashi Thakkar

Rashi started her journey in content when she was completing her MBA. Since then, she has helped well-known startups and businesses boost their online presence. Currently Rashi pens downs insightful articles for AlpenHornNews and various other websites, covering an array of sectors from finance and business to technology and healthcare.