Walmart slashes 1,500 jobs in technology team amid reorganisation push

Walmart's plan will affect teams in its global operations, e-commerce fulfilment in US stores and its advertising business. It is the largest US private employer with about 1.6 million employees

Retail giant Walmart Inc is cutting its corporate staff at its Bentonville, Arkansas headquarters and additional locations as the global retail giant seeks to lower expenses amid economic uncertainty, Bloomberg reported.

 

The US retailer is eliminating positions within its worldwide technology division, affecting fewer than 1,500 workers. The company’s stock showed minimal movement in after-hours New York trading. Shares have gained 6.7 per cent year-to-date through Wednesday’s market close, surpassing the S&P 500 Index performance.

 

Positions eliminated in February

 

This workforce reduction, aimed at streamlining the organisational structure, comes after a reorganisation in February, where Walmart eliminated certain positions and required staff to relocate to centralised facilities in Arkansas and California. With approximately 1.6 million US workers, the company remains America’s largest private sector employer.

   

Walmart’s margins affected by tariffs 

Walmart is also the country’s biggest importer with about 60 per cent of its imports, mainly items such as clothing, electronics and toys, from China. The company had last week said it would raise prices for some products by the end of May as President Donald Trump’s trade war hits its supply chain and increases expenses. These statements prompted criticism from President Donald Trump.

 

Trump increased tariffs on most Chinese goods to 145 per cent, but that rate dropped to 30 per cent as part of a 90-day truce with China.

 

Also read: 'Eat the Tariffs': Donald Trump tells Walmart not to charge shoppers more

 

Trump tells Walmart to ‘eat the tariffs’

 

Trump said on Saturday that Walmart should “eat the tariffs” instead of blaming duties imposed by his administration on imported goods for the retailer’s increased prices. “Walmart should stop trying to blame Tariffs as the reason for raising prices throughout the chain. Walmart made billions of dollars last year, far more than expected,” Trump said in a social media post. “Between Walmart and China they should, as is said, ‘eat the tariffs’, and not charge valued customers anything.”

 

Walmart CEO Doug McMillon had highlighted the retailer could not absorb all the tariff costs because of narrow retail margins. Many US companies have either slashed or pulled their full-year forecasts due to rising tensions between the US and its trade partners, especially China, as consumer spending slows.

 

As a key indicator of US consumer activity, Walmart’s remarks on the effects of tariffs is a signpost of the trade war’s impact on the retail industry. Known for its aggressive cost management to maintain low prices, Walmart serves as a benchmark in this space.