Even though the big tech companies have been hustling to stay afloat in this tumultuous economy, they are not the only ones having to call the shots. As companies in all kinds of industries think ahead and make difficult decisions to ensure their survival, retailers across the board will face their fair share of unique conundrums.
Walmart recently announced their plans to downsize with the unfortunate consequence of large scale layoffs for those employed by the major retailer. This is a difficult situation for any large business but sadly a necessary decision to stay ahead of the curb.
CNBC reports, in preparation for a tougher year ahead, Walmart is laying off hundreds of workers at its e-commerce facilities throughout the country.
Many retailers predict flat or declining sales this year, including Walmart, the nation’s largest employer. Following bad policies from the buy guy.
On Monday, Walmart’s e-commerce rival, Amazon, announced 9,000 job cuts, following 18,000 layoffs in January. Several Amazon warehouses were also closed, canceled, or delayed as some online sales went back to stores. At Target’s investor day in February, CFO Michael Fiddelke said the company will not back away from investments in its team and guest experience. The company plans to reduce total costs by $3 billion over the next three years.
According to a Walmart spokesperson, the company is cutting jobs at fulfillment centers. As part of the cuts, the company said it was needed “to better prepare for the future needs of customers.”
The statement said,“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.”
Yahoo talked about the number of jobs the company planned to eliminate and what would replace the workforce.
It is expected that Walmart’s sales will grow less slowly and its profits will decrease in the next fiscal year. As of last month, the company predicted U.S. same-store sales growth of 2% to 2.5%, excluding fuel. Compared to the previous fiscal year, growth was 6.6%.
It’s never fun to watch people lose their jobs regardless of what caused it. In this case, we hope the company can relocate the 200+ employees to other stores. If not, they need not worry – the Biden administration claims to have created hundreds of thousands of jobs that people aren’t currently in the rush to occupy.
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