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 ahead. Walmart, the nation’s largest private employer, is shrinking its workforce as many retailers plan on roughly flat or declining sales. Inflation and the shift back to services is taking a bite out of sales of goods, particularly after a COVID pandemic-fueled spending boom. Walmart confirmed to Reuters that it’s eliminating hundreds of jobs at five fulfillment centers in Pedricktown, New Jersey; Fort Worth, Texas; Chino, California; Davenport, Florida; and Bethlehem, Pennsylvania.
Total Retail’s Take: Walmart is taking steps to protect its business during an uncertain economic time, controlling labor costs to maintain profits. The retailer is forecasting slower sales growth, including within its e-commerce business, for its upcoming fiscal year. Given that and what we’re seeing with Walmart’s top competitors, Amazon.com and Target, today’s news is perhaps not totally surprising — while nonetheless no easier to take for those impacted employees. Tech industry leaders and now big-box retailers are taking a hard look at their labor forces and scaling back from pandemic-era booms in hiring.
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