Walmart has decided to cut hundreds of corporate jobs as they are going through organizational restructuring. According to Wall Street Journal, Walmart is cutting around 200 corporate jobs. Moreover, the move came a week after the retail giant reported slashed profits amid rising inflation.
“Walmart was updating our structure and evolving select roles to provide clarity and better position the company for a strong future.” Anne Hatfield, a company spokeswoman said in her statement. In addition, she stated that company will invest in other areas, including e-commerce and technology. Moreover, the company has already notified employees in its Bentonville, Arkansas headquarters regarding the restructuring move.
Impact of rising inflation within United States
Inflation has affected the profitability of numerous U.S. companies. Moreover, spike in gasoline and food prices has affected the consumer demand. Hence, the profitability of the companies has declined. Similarly, the profits of Walmart have also declined in recent time. Walmart said that consumers are pulling back on purchases of general merchandise and are purchasing necessity goods. Furthermore, the company is projecting a 13 percent decline in their full year profits.
200 jobs to be cut
Amid reduction in profitability, Walmart has decided to undergo restructuring. The restructuring will lead to lay-offs and 200 corporate jobs will be cut. The Wall Street Journal reported that restructuring will affect merchandising, global technology and real estate teams. However, it will not affect the frontline jobs. Interestingly, the company will create more new jobs in future for the frontline roles.
Job cuts and hiring freeze in U.S. companies
Walmart is the largest employer in the country, with nearly 1.6 million workers in the United States. However, the company’s profitability outlook created an uncertainty amongst the investors. In addition, several companies, including Tesla, Netflix, and Coinbase Global Inc. have announced job cuts. Moreover, a large number of companies have also imposed hiring freeze in wake of recession related concerns and rising inflation within the United States.
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