TOPLINE
Walmart confirmed media reports Thursday that it is reducing the size of its corporate workforce, even as it reinforces the ranks of frontline “essential workers” as the coronavirus pandemic persuades more consumers to cook. at home.
A worker delivers groceries to a customer’s vehicle outside a Walmart Inc. store in Amsterdam, New … [+]
KEY FACTS
The country’s largest retailer has laid off hundreds of workers in departments including store planning, logistics, merchandising and real estate, people familiar with the matter told Bloomberg in a report confirmed by the company. Forbes —And those cuts do not count the reorganization within its approximately 4,750 stores in the United States to consolidate divisions and eliminate some regional manager roles, Bloomberg sources said.
The Bloomberg report did not give a specific number of cuts, and a Walmart spokeswoman said only that the changes were part of Walmart’s bid to become “an omnichannel organization,” capable of serving customers both online and in person; A letter from John Furner, President and CEO of Walmart USA, said the company was “streamlining some roles so that we can be more effective and efficient.”
The coronavirus pandemic and housekeeper orders served supermarkets more nicely than other retailers, and in late April Walmart said it had hired 200,000 associates to work in stores, Sam’s Club locations, and distribution and distribution centers since March 19th.
By far the nation’s largest private sector employer, with 1.5 million American workers, Walmart also said it agreed to pay $ 1.1 billion in cash bonuses to workers since the spring, when the coronavirus began to spread. spread throughout the country.
But, despite a long-running “Fight for $ 15” campaign, and pressure from rival Target, Walmart rejected calls to raise its starting hourly wage to $ 15 an hour, from $ 11 today, though The company says the average, total- hourly wage in the United States is $ 14.26.
Walmart has already spent part of this year reorganizing the store, and CNBC reported that in late February, the company merged its teams of in-store and online buyers to lessen conflicts over the price of products in-store and online. .
key background
Supermarkets were among the few retailers to contract this year as the coronavirus pandemic closed businesses across the country. Allianz SE research predicted US food retailers will see their best year since 2001, with a 7% increase in sales, according to Bloomberg.
tangent
As of July 20, Walmart had launched 357 Covid-19 test sites and had tested more than 155,000 people across the country, according to the company’s website.
Further reading
Walmart is cutting hundreds of corporate jobs (Bloomberg)
Walmart Reduces Corporate Roles by Merging Online, Store Business (CNBC)
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