Walmart laid off nearly 200 corporate employees on Wednesday amid an economic downturn and rising inflation, according to a person familiar with the developments. The company said in a statement that these layoffs are part of a refresh of its structure. Last month the company cut earnings forecast for the second quarter and year and said that people are spending less on items like electronics due to inflation.
The retail giant employs more than 1.6 million people in its stores and supply chain in the US – those workers were not affected by the layoffs. Report from bloomberg noted that job cuts have affected people involved in merchandising and last mile delivery.
“We are updating our structure and evolving selected roles to bring clarity and better position the company for a strong future. At the same time, we continue to invest in key areas such as e-commerce, technology, health and wellness, supply chain and advertising sales, and create new roles to support a growing number of services for our customers, suppliers and business. community,” a Walmart spokesperson said in a statement.
While the company said it is creating new e-commerce and technology roles, it did not specify how many roles will be created.
Rising inflation has also affected other retail giants such as Target as well as Best Buy both have cut their profit targets over the past few months. In its June earnings report, Amazon said it had cut global workforce of nearly 100,000 people which is almost a 6% decrease.
News of the layoffs at Walmart comes just before the government is set to release job creation data for July. Analysts evaluate that the data would show the addition of 250,000 non-farm payroll jobs last month, down from the 372,000 jobs added in June.
Credit: techcrunch.com /