Walmart Laying Off Corporate Employees Amid Dismal Profit Outlook

America’s bellwether retailer Walmart (NYSE: WMT) is downsizing its workforce, following a less-than-ideal profit outlook as surging inflation weathers away at consumers’ pocketbooks.

According to the Wall Street Journal which cited a person familiar with the matter, Walmart started to lay off employees in corporate roles one week after warning of weakening margins. About 200 positions are up for elimination, as the retailer embarks on a restructuring affecting its merchandising, global technology, and real estate departments. The company said it now expects its profit levels to decline not only during the current quarter but also the fiscal year, as consumers skip big-ticket purchases and instead opt to spend their income on necessities such as groceries and fuel.

“Shoppers are changing. Customers are changing,” said Walmart spokesperson Anne Hatfield. “We are doing some restructuring to make sure we’re aligned.” The retailer is America’s largest employer, with a count of around 1.6 million workers. During its chilling July 25 profit guidance, Walmart said it is forced to reduce prices for its high-margin merchandise in order to liquidate some of its piled-up inventory.

Walmart’s latest corporate layoffs come during growing uncertainty over the US economy, as a number of other major retailers report deteriorating sales and profits. As recession fears become more pronounced, the US labour market appears to show signs of weakening. Latest figures show that job openings fell sharply in June, as companies pull back on hiring after experiencing a boom during the height of the Covid-19 pandemic.


Information for this briefing was found via the WSJ and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Is Gold’s Bull Market About to Hit Junior Stocks? | Ken Armstrong – Westhaven Gold

Surge Battery Metals: The Nevada North Lithium PEA

Silver @ $36 & We’re Still 200M Oz Short | Paul Andre Huet – Americas Gold and Silver

Recommended

Goliath Resources Closes Out Funding Round With Total Gross Proceeds Of $27.1 Million

Silver47 Kickstarts 4,000 Metre Drill Campaign At Red Mountain Project

Related News

Tiff Macklem Leaves Rates Untouched, Is Confident Inflation Will Fall ‘Quickly’ In Coming Months

As was widely expected, Bank of Canada Governor Tiff Macklem opted to keep the overnight...

Wednesday, April 12, 2023, 10:23:20 AM

Bank of Canada Hikes Rates 50 Basis-Points, Warns of Further Increases

As a surprise to markets, the Bank of Canada delivered a slightly smaller rate hike,...

Wednesday, October 26, 2022, 10:39:50 AM

Michael Gentile: The Fed Wants Inflation To Be Very High – The Daily Dive

For our mid-week episode of the Daily Dive, we sit down with Michael Gentile, a...

Wednesday, June 16, 2021, 02:00:00 PM

Europe Headed for Double-Dip Recession Following Further Covid-19 Restrictions

Following what were potential signs of a recovery, Europe’s economy contracted again in the final...

Wednesday, February 3, 2021, 11:59:00 AM

European Central Bank Slows Pace of Asset Purchases as Inflation Soars

The European Central Bank has revealed it will reduce the pace of its bond buying...

Sunday, September 12, 2021, 11:07:00 AM