Walmart expected job cuts response to tough e-commerce competition

By

Kate Dingwall

Published
Jan 11, 2017

Walmart has yet another large round of layoffs looming in the near future. Over 1,000 jobs at the retailer's headquarters will be cut later this month, as reported in the Wall Street Journal on Tuesday, citing growing online competition as the cause. This news comes just a few months after Walmart cut 7,000 office jobs.

Walmart spokespeople did not confirm or deny the layoffs but did release a statement following the widely-reported news of the impending cuts: “As we’ve previously shared, we are always looking for ways to operate more efficiently and effectively. While we continually look at our corporate structure, we have not made any announcements.  Like any organization, we make decisions based upon what’s best for our business and the customers we serve.”

Walmart has been running to keep up with the competition Amazon and other e-commerce sites pose, announcing in October that more of its capital expenditure budget would go towards upping in-store tech, payment apps, and its e-commerce site.The company has been making hefty investments into its digital presence as of late that includes an online marketplace not unsimilar to Amazon’s and paying over $3 billion for e-commerce startup Jet.com last fall.

Ads

Walmart's continued layoffs may also be the result of the company’s recent efforts to improve both its customer service and its online presence. In early September, the company cut thousands of office jobs, choosing to free up payroll for getting more workers out and on the selling floor to create a more positive selling experience. Walmart also saw budgets tighten in 2016 after it saw $2.7 million go to wage hikes for store workers.