Walmart is to eliminate about 1,500 corporate positions in the US as part of its overall reshaping with the aim of simplifying operations, minimizing expenses, and hastening in-house decision-making. The layoffs were informed to staff on Wednesday and will impact various aspects of the business, such as global technology operations, e-commerce order fulfilment management, and Walmart Connect, the firm's advertising business, the Wall Street Journal said.
Although the layoffs follow increasing costs of doing business and the company's decision to increase prices due to tariffs, Walmart underscored the fact that the job reduction is unrelated to those tariffs. "These changes reflect a focus on business priorities and our growth strategy, and are not related to tariffs," a company spokeswoman stated.
Under pressure from tariffs and White House criticism
Walmart's revamp comes on the heels of its announcement last week that it would start raising prices on some items in anticipation of higher import tariffs. The move was criticized by President Trump, who has been lobbying large corporations to eat tariff costs instead of transferring them to customers.
In spite of the pressure, Walmart announced robust sales growth in its most recent quarter. Executives at the company asserted that they are attempting to handle profit margins while striving to maintain prices as stable as possible for customers. However, the economic situation—tariffs, increasing labour costs, and supplier issues—has compelled retailers such as Walmart to rethink their cost structures.
Restructuring in tech, fulfilment, and advertising
The 1,500 employees let go will be across Walmart's technology division worldwide, US store support staffs, and its expanding advertising business, a source close to the company said. The company indicated it is also adding some new positions, which implies a deliberate shifting of resources instead of merely laying off people.
In a note to employees, two top Walmart executives stated the restructuring is designed to enable the company to respond more quickly to a rapidly changing retail environment. "Shaping our organization enables us to drive faster how we deliver and keep pace with the evolving world around us," the note stated.
Continuing labour rebalancing at the world's largest retailer
Walmart has about 1.6 million employees in the US, the overwhelming majority of whom work in its stores. Employees in its corporate offices constitute a relatively small percentage of that number. In the past several years, Walmart has reset its labour investments, increasing pay for store and regional managers and increasing compensation at its Sam's Club and in its international operations.
In the process, it has reduced some benefits for corporate employees, reduced behind-the-scenes jobs, and made large investments in automation to enhance efficiency in its supply chain and logistics functions.
This round of job reductions reinforces the company's continued push to balance growth, cost control, and operating flexibility. The effect on frontline store employees should be minimal, but the restructuring reflects more general challenges confronting US retailers who are facing inflationary pressures, changing consumer patterns, and geopolitical volatility.
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