CNBC announced on Twitter yesterday that Walmart is firing 2,300 people soon. That is about 2% of their entire workforce. Firings will be specifically targeting assistant managers at stores with poor profits.
Wal-Mart to lay off 2,300 Sam’s Club employees, about 2% of workforce – DJ • $WMT
— CNBC (@CNBC) January 24, 2014
The country’s self-proclaimed eighth largest retailer said the cost cutting is taking place as a result of a need to compete with Costco, who actually pay their employees a living wage, and online retailers such as amazon.com.
Walmart is pining for the days two years ago in 2011 when it was #1 in the Fortune 500. Forced to aggressively drop prices in order to reverse its plummeting sales, revenues went up 6% but profits went down. Last year’s profits were”only” $15.7 billion, so naturally we all can see the need to put 2,300 people out of work.
More from the Associated Press:
“Wal-Mart Stores Inc. is eliminating 2,300 workers at its Sam’s Club division as it reduces the ranks of middle managers in a bid to be more nimble.
The layoffs, which cut 2 percent of the membership club’s employee count of about 116,000, mark the largest since 2010 when the Sam’s Club unit laid off 10,000 workers as it moved to outsource food demonstrations at its stores.
Bill Durling, a spokesman at Sam’s Club, says that a little less than half of the cuts were aimed at salaried assistant managers. It is also eliminating some hourly workers.
The cuts come as Sam’s Club strives to compete with Costco Wholesale Corp. and online players like Amazon.com’s Prime membership service.