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Walmart cuts 200 corporate employees, says it will continue hiring in ‘key areas’ – TechCrunch

Walmart laid off nearly 200 of the company’s employees on Wednesday amid the economic downturn and rising inflation, according to a person familiar with the development. The company said in a statement that these layoffs are part of updating its structure. Last month, the company lowered its Q2 and full-year earnings guidance and said that because of inflation, people are spending less on items like electronics.

The retail giant employs over 1.6 million people across its stores and supply chain in the US – these workers were unaffected by these layoffs. A report from Bloomberg noted that the job cuts affected merchandising and last-mile delivery workers.

“We are updating our structure and developing selected roles to provide clarity and better position the company for a strong future. At the same time, we continue to invest in key areas such as e-commerce, technology, health and wellness, supply chain and ad sales, and create new roles to support our growing array of services to our customers, suppliers and the community,” a Walmart spokesperson said in an explanation.

While the company said it’s creating new roles in e-commerce and technology, it didn’t specify how many roles will be created.

Rising inflation has also affected other retail giants like target and best buy both have lowered profit targets in recent months. In its June earnings report, Amazon announced that it had cut its earnings global workforce by nearly 100,000 people which corresponds to a reduction of almost 6%.

Walmart’s layoff news comes just before the government is due to release job creation data for July. analysts estimate data will show 250,000 nonfarm payrolls added last month, down from June’s 372,000 new jobs.

Walmart cuts 200 corporate employees, says it will continue hiring in ‘key areas’ – TechCrunch Source link Walmart cuts 200 corporate employees, says it will continue hiring in ‘key areas’ – TechCrunch

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