Walmart laying off hundreds in ominous sign for economy
EDITOR'S NOTE: When Staples sector companies like Walmart begin shedding their workforce, it’s an ominous sign that shouldn’t be ignored. The recent announcement by Walmart that it will be laying off hundreds of employees at its e-commerce fulfillment centers has sent shockwaves through an already jittery economy. For many Americans, this news is just the latest sign that the economy is on shaky ground and that their livelihoods are at risk.
With rising inflation, a looming debt crisis, and an uncertain job market, it's no wonder that so many people are feeling anxious about the state of the economy. As Walmart's layoffs show, no industry or sector is immune from the economic upheaval. Despite the best efforts of policymakers and business leaders, many Americans are worried about their future economic prospects, and Walmart’s latest move can only exacerbate those fears.
Walmart is laying off hundreds of workers based at e-commerce fulfillment centers in a development that could signal more trouble for the struggling US economy.
Roughly 200 workers based at a facility in New Jersey will receive pink slips, a Walmart spokesperson told Reuters on Thursday.
Hundreds of additional employees were laid off at four other sites based in Fort Worth, Texas; Davenport, Florida; Bethlehem, Pennsylvania and Chino, California.
“We recently adjusted staffing levels at our [fulfillment centers] in select markets to better prepare for the future needs of customers,” Walmart said in a statement.
“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 statement added.
The Walmart spokesperson said the cuts were necessary as the company reduced or eliminated evening and weekend shifts at the impacted facilities. The employees will be paid for 90 days as Walmart attempts to place them in jobs at other locations.
The culling occurred following years of major investment in automation technology as Walmart looks to streamline its e-commerce order fulfillment operations – though the company spokesperson declined the layoffs were related to that push.
Walmart said the layoffs are due to a reduction or elimination in evening and weekend shifts. Source: New York Post
During a post-earnings call in February, Walmart CEO Doug McMillon said he was “most excited about the automation opportunity we have.” The company plans to increase investments in automation technology this year as part of a $15 billion capital expenditure budget.
Walmart did not comment on the exact number of employees impacted by the cuts. The spokesperson said the company is still unsure how many will ultimately be laid-off or rehired.
The company has roughly 5,000 US locations and is the country’s largest private employer, with about 1.7 million workers.
Walmart is considered a bellwether for the retail industry due to its massive scale and nationwide store footprint. Many retailers have faced a financial crunch as lingering inflation eats into margins and leads customers to dial back on purchases.
In February, Walmart said it expects same-store sales growth at its US locations of just 2% to 2.5% in fiscal 2024 – down from 6.6% the previous year.
Walmart CEO Doug McMillon said the retailer is investing in automation technology as part of its more than $15 billion capital expenditure budget this year.
Source: New York Post
The retail giant joined other firms that have slashed jobs in recent days due to a deteriorating economic outlook and a year-long surge in interest rates.
The US economy has come under further pressure in recent days due to concerns about the stability of regional banks following the sudden implosions of Silicon Valley Bank and Signature Bank of New York.
Amazon, a key Walmart rival, announced plans this week to slash another 9,000 jobs – just weeks after the company laid off approximately 18,000 employees.
Originally Posted by: Thomas Barrabi on NYPost.com
