From CNBC:
"Walmart is laying off hundreds of employees at e-commerce facilities across the country, as the big-box giant and other retailers brace for a tougher year ahead … A spokesperson for Walmart confirmed it was cutting jobs at fulfillment centers. In a statement, the company said it made the cuts 'to better prepare for the future needs of customers.'
'This decision was not made lightly, and we’re working closely with affected associates to help them understand what career options may be available at other Walmart locations,' the statement said."
The affected fulfillment centers are in Pedricktown, New Jersey; Fort Worth, Texas; Chino, California; Davenport, Florida; and Bethlehem, Pennsylvania.
CNBC writes that "Walmart, the nation’s largest private employer, is shrinking its workforce as many retailers plan on roughly flat or declining sales. Inflation and the shift back to services is taking a bite out of sales of goods, particularly after a Covid pandemic-fueled spending boom.
"Walmart’s e-commerce rival, Amazon, announced 9,000 job cuts on Monday, following 18,000 layoffs in January. Amazon has also closed, canceled and delayed the opening of new warehouses, as some online sales shifted back to stores. Another competitor, Target, plans to cut up to $3 billion in total costs over the next three years, but CFO Michael Fiddelke said at a February investor day that the company is 'not backing away from investments in our team and guest experience'."
- KC's View:
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My sense, from numerous conversations, is that Walmart's cuts are surgical, and that while the company is looking to restore some balance to its e-commerce operations, it remains committed and active on the innovation front.
I think it is a pretty good bet that hen the year is over, Walmart won't have taken as big a hit as other retailers, and will be well positioned for a future that requires flexibility.
