Walmart To Make Deeper Cuts To Counter Q3 Figures
By Christine Kern, contributing writer
Retailer set to eliminate 500 additional jobs at its headquarters.
Retail giant Walmart had disappointing returns for Q3, and is now poised to make serious cuts in response to low numbers. CNBC reported that company sources said that the cuts – which could be close to 500 jobs – would be announced as early as October 2, although the move has not yet been made public.
Walmart has not issued an official comment on the news, though the cuts were reported earlier by The Wall Street Journal. The layoffs are reportedly a continued attempt to make operations more efficient.
Fortune reported that Walmart is currently investing billions of dollars on its ecommerce campaigns, in addition to the $1.5 billion for wage increases for store workers. In February, Walmart announced that it was taking bold steps to invest in its employees by raising average wages and providing money for training to help employees advance. Walmart employs 1.3 million people in the U.S., and 18,600 at the company headquarters in Bentonville.
The cuts are not totally unexpected, as Wal-Mart Stores CEO Doug McMillon alluded to the cuts last month on a recorded call to discuss the retailer’s quarterly results. He stated, “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.”
Walmart also eliminated some in-store management roles earlier this year in order to improve shopper service, cut bureaucracy, and give frontline workers a greater voice.
Walmart is not the only retailer feeling the pressure. Earlier this year, Target cut 1,700 jobs at its Minneapolis headquarters and closed 1,400 open positions, while recently Whole Foods announced the elimination of 1,500 jobs.
Chief Executive Doug McMillon has placed significant emphasis on streamlining operations in recent months. After the company’s annual shareholders’ meeting in June, McMillion told analysts: "There are no cash registers in the office," underscoring his focus on stores as the earnings driver for the company.