Walmart is laying off hundreds of employees at e-commerce facilities across the country as the big box giant and other retailers brace for a more difficult year ahead.
Walmart, the nation’s largest private employer, is cutting its workforce as many retailers plan for near-flat or declining sales. Inflation and a return to services are affecting sales of goods, particularly after a spending boom fueled by the COVID-19 pandemic.
Walmart’s e-commerce rival Amazon announced 9,000 job cuts on Monday, following 18,000 layoffs in January. Amazon has also closed, canceled and delayed the opening of new warehouses, as some online sales returned to stores.
Another competitor, Target, plans to cut up to $3 billion in total costs over the next three years, but Chief Financial Officer Michael Fiddelke told an investor day in February that the company “will not back down on investments in our team and expertise.” of the guests”.
A Walmart spokesman confirmed that it was cutting jobs at fulfillment centers. In a statement, the company said it made the cuts “to better prepare for future customer needs.”
“This decision was not made lightly, and we are working closely with affected associates to help them understand what career options may be available at other Walmart locations,” the statement said.
The news was first reported by Reuters.
The company confirmed to Reuters that it will cut hundreds of jobs at five logistics centers in Pedricktown, New Jersey; Fort Worth, Texas; Chino, Calif.; Davenport, Florida; and Bethlehem, Pennsylvania. It told Reuters it was reducing its workforce due to a reduction or elimination of night and weekend shifts.
About 200 workers will be affected at the southern New Jersey facility, according to a notice filed with the state.
Walmart anticipates slower sales growth and lower profits in the upcoming fiscal year. The company said last month that it expects same-store sales for its US business to grow between 2% and 2.5%, excluding fuel. That compares with growth of 6.6% in the previous fiscal year.
The company expects adjusted earnings per share to be in the range of $5.90 to $6.05, excluding fuel, for the fiscal year. That’s lower than adjusted earnings per share of $6.29 for the last fiscal year.
Online sales have continued to grow, albeit at a slower rate than during the peak of the pandemic. E-commerce sales for Walmart’s US business increased 12% in the most recent fiscal year, which ended Jan. 31. That compares with growth of 11% in fiscal year 2022 and 79% in fiscal year 2021.
It is article It was originally published in English by Melissa Repko for our sister network CNBC.com. For more from CNBC enter here.
