Walmart to cut 200 company jobs due to lower inventory margins, costs and profits
Walmart is shedding about 200 of the company’s jobs as it faces rising costs, rising inventories and generally weak demand for goods.
People familiar with the matter said the cuts included merchandise and technology employees, who asked to remain anonymous because the matter is private. Walmart will also add an unspecified number of jobs in areas such as e-commerce, health and wellness, ad sales and supply chain, one of them said.
“We are updating our structure and developing select roles to bring clarity and better position the company for a strong future,” the company said in an email. “At the same time, we are investing further in key areas and creating new roles to support our growing number of services to customers, suppliers and the business community.”
The retail giant is tightening its belt a week after cut its annual profit forecast for the second time in less than three months. US consumers are buying less clothing and durable goods as high inflation drives up the cost of food and basic goods. That prompted Walmart to lower the price of general merchandise even as grocery sales — which are less profitable for retailers — continued to soar.
The stock fell 0.5% in extended trading. The job cuts were first reported by the Wall Street Journal.
Walmart has a US workforce of nearly 1.6 million, according to website. The Bentonville, Arkansas-based company is the nation’s largest private-sector employer.
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