Walmart on Wednesday fired around 200 corporate employees amid the economic slowdown and rising inflation. The company said in a statement that these layoffs are part of an update to its infrastructure. Last month, the firm slashed its Q2 and annual profit guidance He said that due to inflation, people are spending less on goods like electronics.
The retail giant employs more than 1.6 million people in its stores and supply chain in the US — those employees were not affected by these layoffs. a report from bloomberg Noted that job cuts affected people in merchandising and last mile delivery.
“We are updating our structure and evolving select roles to provide clarity and better position the company for a stronger future. At the same time, we are investing in key areas such as e-commerce, technology, health and wellness, supply chain, and advertising sales and creating new roles to support our growing services for our customers, suppliers, and business. . community,” a Walmart spokesperson said in a statement.
While the company said it was creating new roles in e-commerce and technology, it did not specify how many roles would be created.
Rising inflation has also affected other retail giants like target And best Buy Both have cut their profit targets over the past few months. In its June earnings results, Amazon revealed that it cut its Global workforce by about 100,000 people accounting for a decrease of about 6%.
The news of Walmart’s layoffs comes just before the government released data on job creation for July. Analysts assessment That data would add 250,000 non-farm payroll jobs last month, down from the 372,000 jobs added in June.