Wal-Mart Starts Layoffs at Headquarters -- Update
January 20 2017 - 6:23PM
Dow Jones News
By Sarah Nassauer
Wal-Mart Stores Inc.'s plans were under way Friday to cut nearly
1,000 corporate jobs.
The layoffs, which occurred in midday closed-door meetings in
Bentonville, Ark., affected employees involved with the retailer's
supply chain, known as "replenishment," a person familiar with the
situation said. They are expected to continue through the end of
the month, executives familiar with the process said, as workers in
human resources, technology and e-commerce are cut.
The Wall Street Journal reported earlier this month that
Wal-Mart planned to trim its workforce by Jan. 31, the end of its
fiscal year.
Last Friday, the retailer said several top executives would
leave the company and it would reshuffle responsibility for others
to focus on both store and e-commerce operations.
"To fuel our growth and our investments we have to manage our
costs," its chief executive, Doug McMillon, wrote in a memo to
staff reviewed by the Journal last Friday. "From time to time,
you'll see the company eliminate positions in an effort to stay
lean and fast."
Wal-Mart's cuts Friday come as the U.S.'s largest private
employer, along with much of corporate America, is navigating a
difficult balancing act: working to follow through on investor
promises to create leaner operations while placating Mr. Trump's
new administration by highlighting U.S. job growth.
Several major companies, including General Motors Co. and
Amazon.com Inc., have touted the creation of thousands of new jobs
since Mr. Trump was elected, though many of those openings already
were in the works.
Wal-Mart has planned to both add and cut jobs this year. Days
after the Journal reported on the company's layoff plans, Wal-Mart
said it would create 10,000 new U.S. jobs this year.
Although those positions stem mostly from existing efforts to
open and remodel stores and represent less than 1% of its U.S.
workforce, the announcement elicited a "thank you" tweet from Mr.
Trump.
For much of the last two years, Wal-Mart executives have
emphasized the company's commitment to lowering operating costs.
Mr. McMillon has repeatedly told investors the company is willing
to pare its workforce and stores when necessary to invest in
boosting e-commerce sales and improving existing stores, areas he
believes will provide growth in the future.
Since early 2016, Wal-Mart has cut more than 18,000 U.S. jobs
through closing stores, trimming staffing at some locations and
cutting jobs at its headquarters. It has previously said many of
those people were offered other open positions.
It is also working to stay connected to the new administration.
In December, Mr. Trump's transition team said Mr. McMillon would be
part of his "strategic and policy forum," along with over a dozen
other CEOs.
Write to Sarah Nassauer at sarah.nassauer@wsj.com
(END) Dow Jones Newswires
January 20, 2017 18:08 ET (23:08 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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