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Walmart is laying off hundreds of employees at e-commerce facilities across the country as the big-box giant and other retailers brace for a tougher year.
Walmart, the country’s largest private employer, is reducing its workforce as many retailers expect sales to remain roughly flat or fall. Inflation and the shift back to services are affecting sales of goods, particularly after a spending boom triggered by the Covid pandemic.
Walmart’s e-commerce rival Amazon announced Monday it would cut 9,000 jobs after laying off 18,000 in January. Amazon has also closed, canceled and delayed the opening of new warehouses as some online sales have been moved back to stores. Another competitor, Target, plans to cut overall costs by as much as $3 billion over the next three years, but CFO Michael Fiddelke said at an investor day in February that the company “isn’t looking forward to investing in our team and our guest experience.” recoils”.
A Walmart spokesman confirmed that jobs at fulfillment centers are being cut. In a statement, the company said it made the cuts “to better prepare for future customer needs.”
“This decision was not made lightly for us, and we are working closely with affected employees to help them understand what career opportunities are available at other Walmart locations,” the statement said.
The news was first reported by Portal.
The company confirmed to Portal that it is cutting hundreds of jobs at five fulfillment centers in Pedricktown, New Jersey; Fort Worth, Texas; Chino, California; Davenport, Florida; and Bethlehem, Pennsylvania. It told Portal it was reducing its workforce due to a reduction or elimination of evening and weekend shifts.
About 200 workers at the southern New Jersey facility will be affected, according to a filing with the state.
Walmart expects slower sales growth and lower profits in the coming fiscal year. The company said last month that it expects same-store sales for its US business to grow between 2% and 2.5%, excluding fuel. This contrasts with growth of 6.6% in the previous financial year.
The company expects adjusted earnings per share of $5.90 to $6.05 for the fiscal year, excluding fuel. That’s down from the company’s adjusted earnings per share of $6.29 for the past fiscal year.
Online sales have continued to grow, albeit at a slower pace than during the peak of the pandemic. E-commerce sales for Walmart’s U.S. operations grew 12% in its most recent fiscal year, which ended Jan. 31. This compares to growth of 11% in fiscal 2022 and 79% in fiscal 2021.