Walmart has axed at least 200 corporate employees as rising inflation takes its toll on companies worldwide and describes it as a way to “better position the company for a strong future.”
Walmart employs nearly 1.6 million workers in the US and is updating its structure and evolving select roles to provide clarity and better position the company for a strong future. At the same time, the company is “further investing in key areas like e-commerce, technology, health & wellness, supply chain, and advertising sales and creating new roles to support our growing number of services.”
The news of layoffs at Walmart came as the company recently slashed its profit outlook due to inflation. The global macro-economic conditions, especially rising inflation, have hit other retail giants like Target and Best Buy too, who have cut profit targets.
Amazon has also reduced its direct workforce by nearly 1 lakh, the largest sequential drop in its history, primarily at its fulfillment centres and distribution network. According to Brian Olsavsky, Chief Financial Officer, Amazon plans to become more cautious in its hiring at its headquarters and other facilities going forward. Amazon said that right now, it sees stabilization in the workforce.