Published on: January 25, 2010Walmart announced yesterday that it will eliminate nine percent of its Sam’s Club workforce in the US, cutting more than 11,000 jobs. The majority of the cuts come from the elimination of the company’s product sampling division, as Sam’s will outsource the function to the Shopper Events marketing company.
Employees were informed of the changes at mandatory Sunday morning meetings, according to MSNBC. They were told that they could apply for jobs that will now be created at Shopper Events.
In addition, Sam’s plans to eliminate business membership representative positions - about two per store - that were relatively new in the chain.
Earlier this month, the company had announced the closure of 10 unprofitable Sam’s Clubs, which resulted in the elimination of 1,500 jobs.
- KC's View:
- One has to assume - or at least hope, for Walmart’s sake - that this is not merely an efficiency move. It always gets dangerous when effectiveness is sacrificed at the altar of the almighty profit margin...but the guess here is that Walmart is not making that kind of mistake.