Walmart is cutting hundreds of corporate jobs and will force its remote workforce back into the office, according to a report.
The big-box retailer demanded workers at corporate offices in Dallas, Atlanta and Toronto to move to one of three major officers across the country. One office is in Bentonville, Arkansas, another is in Hoboken, New Jersey, and a third is in Southern California, according to the Wall Street Journal. If they don’t agree to move, they can quit with severance.
Remote workers are also being asked to return will be allowed to work a hybrid schedule, according to the report.
As of January, Walmart employed approximately 2.1m people.
Those who leave the company will receive two weeks’ pay for every year they were with it, according to Reuters,
Workers have until July 1 to make their decision.
The cuts come as discretionary spending is getting tighter in America with rising costs. Walmart is expected to report its first-quarter earnings on Thursday. News of the cuts caused the company’s stock to fall 1.2 percent during Tuesday’s trading.
Job cuts and workforce consolidation aren’t the only signs that Walmart is struggling; the retail giant closed more than 20 stores last year, and is continuing to close locations this year.
“These stores lose tens of millions of dollars a year, and their annual losses nearly doubled in just the last five years,” Walmart said in a press statement in 2023 after stores in Chicago were closed.
At least six Walmart locations have closed in the US since the start of the year. Most of those stores have been in California, while two others were closed in Maryland and Ohio.
In addition to closing down stores, Walmart decided last month that it would close all 51 of its Walmart Health Centres and Walmart Health Virtual Care services. The company reportedly decided that the business model was not sustainable. Workers affected by the upcoming closures will be given the chance to transfer to a Walmart or a Sam’s Club store.
Walmart started offering health services in 2019.
While the health centers will close, the company will still operate its 4,600 pharmacies and more than 3,000 vision centers.
Walmart is not the only retailer cutting jobs; Indeed announced on Monday that it would layoff 1,000 workers worldwide, accounting for approximately 8 percent of its workforce.
Rivian Automotive, which manufactures electric trucks, announced on 24 April that it was laying off more than 120 employees at its California locations. Those layoffs will begin in June.
Earlier this year, Amazon announced it would cut hundreds of jobs in its Amazon Web Services unit, and Elon Musk has both laid off and reportedly re-hired the Tesla Supercharger team.