- Walmart has reportedly laid off hundreds of corporate workers.
- According to a report from the Wall Street Journal, around 200 jobs have been nixed.
- The news comes after multiple different large companies have instigated layoffs.
Walmart has reportedly laid off approximately 200 corporate employees from its Bentonville, Arkansas, headquarters.
The Wall Street Journal was first to report news of the layoffs, which predominantly affected the merchandising, global technology and real estate teams.
The news comes amid a sweep of layoffs at high-profile companies, from Microsoft to 7-Eleven. Walmart had previously sounded the alarm on its outlook, with CEO Doug McMillion releasing a statement on how “increasing levels of food and fuel inflation are affecting how customers spend.”
At the end of last month, Walmart announced it expects a drop in profits for the second quarter and the 2023 fiscal year. Simultaneously, the retail giant directed store managers to promptly implement rollbacks on summer apparel and merchandise to off-load bloated inventories, according to an internal memo viewed by Insider.
“While we’ve made good progress clearing hardline categories, apparel in Walmart US is requiring more markdown dollars,” McMillon said in a statement about the changed profit guidance. “We’re now anticipating more pressure on general merchandise in the back half.”
The layoffs come as Walmart still continues to wrestle with a plethora of excess inventory. In an in-depth report published by Insider in July, store-level employees detailed myriad pallets rendering floors unwalkable, towering boxes that have blocked access to places like private breastfeeding rooms and bathrooms, and outdoor trailers stuffed with overstock.
And analysts think the overstock problem will last well into 2023.
The “Great Regret” has also prompted large companies to reassess pandemic-era expansion, in the face of growing economic uncertainty. McMillon previously indicated that Walmart hired too many people during the pandemic.
Walmart did not immediately respond to Insider’s request for comment. But company spokeswoman Anne Hatfield told CNBC in a statement that the layoffs are meant to “better position the company for a strong future.”
“Shoppers are changing. Customers are changing,” she said. “We are doing some restructuring to make sure we’re aligned.”