Walmart lays off hundreds of employees at e-commerce sites
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walmart is laying off hundreds of employees at e-commerce sites across the country as the big giant and other retailers gear up for a tougher year.
Walmart, the nation’s largest private employer, is cutting its workforce as many retailers target roughly flat or declining sales. Inflation and a return to services are reducing product sales, especially after the pandemic-driven spending boom.
Walmart’s e-commerce competitor, Amazonannounced it was cutting 9,000 jobs on Monday after 18,000 layoffs in January. Amazon has also closed, canceled and postponed the opening of new warehouses as some online sales returned to stores. Another competitor Target, plans to cut total spending to $3 billion over the next three years, but CFO Michael Fiddelke said at the February Investor Day that the company is “not reluctant to invest in our team and guest experience.”
A Walmart spokesperson confirmed that it is cutting jobs at fulfillment centers. The company said in a statement that they made the cuts “to better prepare for future customer needs.”
“This decision was not an easy one to make, and we are working closely with affected employees to help them understand what career options may be available at other Walmart locations,” the statement said.
First reported about it Reuters.
The company confirmed to Reuters it will be eliminating hundreds of job cuts at five fulfillment centers, including one in Pedricktown, New Jersey; Fort Worth, Texas; Chino, California; Davenport, Florida; and Bethlehem, Pennsylvania. The company told Reuters that it is reducing its workforce due to the reduction or elimination of evening and weekend shifts.
Approximately 200 workers will be affected at a facility in south Jersey, according to the notice. filed in New Jersey.
Walmart expects slower sales growth and lower profits next year as Americans put more of their money into buying essentials like food and household items. The company said last month that it expects same-store sales for its U.S. business to grow 2-2.5%, excluding fuel, in the fiscal year. This compares to a 6.6% growth in the previous fiscal year.
The company expects adjusted earnings per share for the fiscal year to be between $5.90 and $6.05 excluding fuel. That’s lower than adjusted earnings per share of $6.29 for last fiscal year.
Online sales continue to grow, albeit at a slower pace than at the peak of the pandemic. E-commerce sales for Walmart’s US business grew 12% in the most recent fiscal year ending January 31st. This compares to growth of 11% in FY2022 and 79% in FY2021.