NEW YORK: Walmart is cutting hundreds of corporate jobs and asking most remote workers to relocate to three main tech offices or quit the company, a source familiar with the matter said on Tuesday.
Workers at the US retail giant’s smaller offices in Dallas, Atlanta and Toronto are being asked to move to other central hubs such as Walmart’s corporate base in Bentonville, Arkansas, as well as Hoboken, New Jersey, or Sunnyvale, California, the source told Reuters. Walmart will close those smaller hubs later this year, the source added.
On a “business update” call with employees on Monday, remote workers were given until July 1 to make a decision about relocating or to quit with severance, according to the source, who spoke on condition of anonymity.
Those who choose to leave will receive two weeks pay for every year they worked at Walmart as severance, the source said.
Walmart’s job cuts underscore its efforts to cut costs as discretionary spending in the United States remains strained. Americans’ spending on non-essential items like clothing has lagged behind 2021 levels, as per Deloitte surveys.
Walmart will report first-quarter results on Thursday. It had approximately 2.1 million workers as of Jan. 31, mainly store and warehouse associates.
Walmart shares were down 1.2% at $59.66 in midday trading on Tuesday.
Walmart’s decision to cut jobs at headquarters and relocate others underscores the challenges facing the retail giant. The move reflects Walmart’s proactive approach to remain competitive in the rapidly evolving retail landscape. Furthermore, it signals a shift towards greater agility and adaptability in the company’s operations.
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