Wal-Mart Stores is again scaling back its corporate workforce as the retailer reportedly will eliminate its jewelry business and decrease the number of co-managers per store, and reduce areas such as direct-store-delivery receiving, according to persons familiar with the changes.
The reduction has been the norm for the retail giant who said a year ago it was continually looking for ways to run a leaner operation as it invests in e-commerce capabilities. Wal-Mart’s fiscal year ends Jan. 31 and the latest restructuring falls in line with the time frame when the company usually does scale back.
News of the pending layoffs hit social media feeds in December, but the company would not then confirm to Talk Business & Politics any such corporate downsizing. Again, on Friday (Jan. 12), the retailer released the following statement regarding the corporate restructuring reported by the Wall Street Journal: “As we’ve previously stated, we’ve been looking at our structure for some time as we explore ways to operate more effectively. We continue to do that but are not going to comment on rumors and speculation.”
Talk Business & Politics learned a meeting was held Friday with store management and that’s when some of the news leaked to the media. Again, Wal-Mart didn’t confirm nor deny jobs were being eliminated. Talk Business & Politics also confirmed recently with other sources the company’s Information Systems Division, the technology arm in Bentonville, continues to shed jobs — moving some of the work to India.
This marks the fourth round of corporate job reductions by Wal-Mart Stores since January 2017. At that time Wal-Mart CEO Doug McMillon released the following statement in a memo to employees: “We need more speed and less bureaucracy to better serve shoppers to save them money and time. In an effort to stay lean and fast some positions within the company are being eliminated.”
Around 300 jobs were eliminated in April from ISD, or WalmartLabs, in Bentonville. McMillon then told employees lower costs were needed and that was going to mean a change of the company from the inside. He forecast then that the need for continued investment and capital discipline would ultimately mean the elimination of positions in some areas of the business.
“These are hard choices. We care about our friends and colleagues and will do our best to handle these transition smoothly and always with respect.” McMillon concluded in the April memo.
Areas seeing personnel cutbacks in the past 12 months include transportation, real estate, merchandising, buying, replenishment, finance and global shared services.
As with any layoff at Wal-Mart corporate, employees are allowed to apply for open positions within the company and they remain on the payroll for 60 days while looking for another job. If they haven’t secured another job at the end of 60 days they receive a severance package commensurate with their position and years of service.
Read more: https://talkbusiness.net/2018/01/another-round-of-wal-mart-corporate-store-layoffs-expected/