Layoffs: Walmart cuts 1,500 jobs in technology team, says move will ‘reduce complexities, accelerate decisions'
Layoffs: American retail giant Walmart Inc. is cutting corporate staff at it's Bentonville headquarters in Arkansas, and other offices, Bloomberg reported, ciring sources.
The move aims to cut costs amid economic volatility, it said, adding that an internal memo said staffing changes are aimed at creating more efficiency.
According to the sources, the world's largest retailer is cutting roles in its global technology team. And one source said fewer than 1,500 employees are impacted.
'Changes are aimed at accelerating decision-making and reducing complexities. In addition to eliminating some roles, Walmart is creating new positions,' the internal memo signed off by Chief Technology Officer Suresh Kumar and Walmart US Chief Executive Officer John Furner stated.
The cuts will simplify the tech team's structure and allow faster movement and more effective adaption, besides improving efficiency, the memo further said.
'Today, store fulfillment is a complicated process with multiple points of contact. This creates friction,' Cedric Clark, executive vice president of store operations at Walmart US, said in a separate memo, adding that removing friction around digital orders will help customers. Walmart is making changes to some roles running these orders.
The company is also changing the structure of the advertising business, Kumar and Furner said.
Walmart didn't comment on the layoffs. The shares were little changed in late trading in New York. The stock has risen 6.7% this year through Wednesday's close, outperforming the S&P 500 Index.
The downsizing follows a reorganization in February, when Walmart cut some jobs and asked employees to move to central offices in Arkansas and California. The company has about 1.6 million US employees, making it the largest private employer in the country.
Walmart has performed better than its competitors in recent quarters, but warned that prices are poised to rise due to higher tariffs. Those remarks drew the ire of President Donald Trump over the weekend.
(With inputs from Bloomberg)
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