US retail giant Walmart is planning to cut around 1,500 corporate jobs as part of a restructuring effort to simplify its operations, adding to the latest list of companies announcing layoffs, reported news agency Reuters. This is a part of a restructure designed to shave expenses and enable faster decision making.
The move is aimed towards streamlining its operations, according to an internal memo cited by Reuters. The job cuts are expected to span across a range of roles, impacting staff in Walmart’s global technology division, e-commerce operations within US stores, and its advertising unit, Walmart Connect.
The company's plan will impact teams in its global technology operations, e-commerce fulfillment in US stores and its advertising business Walmart Connect. "To accelerate our progress delivering the experiences that will define the future of retail, we must sharpen our focus," the memo said.
The company will also eliminate some roles and opening some new ones, according to the plan.
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Responding to the comments, the US President shared a post on May 17 on Truth Social to write: “Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain. Walmart made BILLIONS OF DOLLARS last year, far more than expected. Between Walmart and China they should, as is said, “EAT THE TARIFFS,” and not charge valued customers ANYTHING. I’ll be watching, and so will your customers!!!”
Walmart responded to Trump's criticism where he suggested that the retailer should “Eat The Tariffs” rather than passing the increased prices onto consumers. Walmart spokesperson Joe Pennington told USA Today that the company has always worked to keep prices as low as possible and will continue doing so as long as it can. “We have always worked to keep our prices as low as possible and we won’t stop,” Pennington said, adding “We'll keep prices as low as we can for as long as we can given the reality of small retail margins.”
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Walmart beat first-quarter estimates, but missed its sales goal, according to earnings reported last week. The company said its e-commerce business was profitable for the first time during the quarter.
"We are eliminating roles as well as opening some new roles aligned with our business priorities and growth strategy."
"The world of technology is evolving at an unprecedented pace, and reshaping our structure allows us to accelerate how we deliver and adapt to the changing environment around us," the note states.
"These changes reflect a focus on business priorities and our growth strategy, and are not related to tariffs," Lamontagne said in an emailed statement.
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Walmart is the largest US private employer with about 1.6 million employees. It employed about 2.1 million employees worldwide in total, according to its website. It is also the country's biggest importer with about 60% of its imports, mainly items such as clothing, electronics and toys, from China.
Walmart had cut some roles and closed its office in North Carolina in February as part of its move to relocate employees to its main hubs in California and Arkansas.
(With inputs from Reuters)
The move is aimed towards streamlining its operations, according to an internal memo cited by Reuters. The job cuts are expected to span across a range of roles, impacting staff in Walmart’s global technology division, e-commerce operations within US stores, and its advertising unit, Walmart Connect.
The company's plan will impact teams in its global technology operations, e-commerce fulfillment in US stores and its advertising business Walmart Connect. "To accelerate our progress delivering the experiences that will define the future of retail, we must sharpen our focus," the memo said.
The company will also eliminate some roles and opening some new ones, according to the plan.
ALSO READ: Trump's One big, Beautiful bill: When will no tax on tips, overtime, Social Security start?
Walmart job cuts amid tariff war
The job cuts come at a time when the world's largest retailer said last week that it plans to raise prices on some items due to the impact of President Trump's tariffs. Walmart CEO Doug McMillon recently warned that it would begin raising prices later this month due to high tariffs. In an interview with CNBC on May 15, the company’s CFO John David Rainey said: “The level of tariffs that have been proposed is pretty challenging for all retailers, for suppliers, and certainly our concern is that consumers are going to feel some of that”.Responding to the comments, the US President shared a post on May 17 on Truth Social to write: “Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain. Walmart made BILLIONS OF DOLLARS last year, far more than expected. Between Walmart and China they should, as is said, “EAT THE TARIFFS,” and not charge valued customers ANYTHING. I’ll be watching, and so will your customers!!!”
Walmart responded to Trump's criticism where he suggested that the retailer should “Eat The Tariffs” rather than passing the increased prices onto consumers. Walmart spokesperson Joe Pennington told USA Today that the company has always worked to keep prices as low as possible and will continue doing so as long as it can. “We have always worked to keep our prices as low as possible and we won’t stop,” Pennington said, adding “We'll keep prices as low as we can for as long as we can given the reality of small retail margins.”
ALSO READ: Republicans proposing nearly $1 trillion in cuts to Medicaid and food stamps. Will you be impacted?
Walmart beat first-quarter estimates, but missed its sales goal, according to earnings reported last week. The company said its e-commerce business was profitable for the first time during the quarter.
What kind of roles would Walmart eliminate?
The restructuring will be within Walmart's global technology and Walmart US organizations, Suresh Kumar, the company's global chief technology officer, and John Furner, US president and CEO, said in a note to Walmart's office-based employees, Axios reported."We are eliminating roles as well as opening some new roles aligned with our business priorities and growth strategy."
"The world of technology is evolving at an unprecedented pace, and reshaping our structure allows us to accelerate how we deliver and adapt to the changing environment around us," the note states.
"These changes reflect a focus on business priorities and our growth strategy, and are not related to tariffs," Lamontagne said in an emailed statement.
ALSO READ: Universal’s new Epic Universe, first new Florida theme park in 25 years, challenges Disney. Check dates, ticket prices and more
Walmart is the largest US private employer with about 1.6 million employees. It employed about 2.1 million employees worldwide in total, according to its website. It is also the country's biggest importer with about 60% of its imports, mainly items such as clothing, electronics and toys, from China.
Walmart had cut some roles and closed its office in North Carolina in February as part of its move to relocate employees to its main hubs in California and Arkansas.
(With inputs from Reuters)
