Walmart is reportedly eliminating hundreds of jobs at five ecommerce fulfillment centers, according to Reuters and CNBC. Affected employees have been asked to find jobs at other Walmart locations within 90 days as the company makes cuts “to better prepare for the future needs of customers,” according to a company spokesperson.
“This decision was not made lightly, and we’re working closely with affected associates to help them understand what career options may be available at other Walmart locations,” the spokesperson said in a statement.
The affected fulfillment centers are located in Pedricktown, N.J.; Fort Worth, Texas; Chino, Calif.; Davenport, Fla.; and Bethlehem, Pa. The retail giant is downsizing its workforce because of a reduction or elimination in evening and weekend shifts. While the company didn’t provide exact numbers, a notice filed in New Jersey stated that the Pedricktown layoffs will affect approximately 200 workers.
Walmart is far from alone in reducing fulfillment operations staffing; retailers across the industry are seeking to right-size operations following the pandemic-driven ecommerce boom. These companies also are expecting slow sales in 2023, including Walmart projecting same-store sales growth ranging between 2% and 2.5%, compared to 6% growth in 2022. Other retailers cutting back include:
- Amazon, which has eliminated 27,000 jobs over several rounds, most recently cutting 9,000 jobs mostly in its AWS, People Experience and Technology and Twitch businesses;
- H&M, which cut 1,500 jobs to boost efficiency as part of a $193 million global cost-cutting effort;
- Saks.com, which is reportedly planning to let at least 100 employees go, or approximately 5% of its workforce;
- Wayfair, which laid off 1,750 employees, or 10% of its global workforce, as part of its plan to right-size its cost structure; and
- Foot Locker, which will lay off an unspecified number of employees in corporate and support roles with the goal of saving $18 million annually.