Now that Walmart has completed its acquisition of a majority stake in South African retailer Massmart a major competitor contends it will need to lay off 8.6% of its work force to improve its competitive position.
That’s according to South African media reports indicating rival Pick n Pay Stores said it was looking to eliminate 3,137 of its 36,673 positions. Conversely, Walmart has said it will create 15,000 jobs in South Africa within five years, implying a fairly robust level of expansion.
Pick n Pay’s may need to make layoffs, but it’s not because of Walmart. The company has reported disappointing financial results of late and lost market share to such rivals as Shoprite Holdings, according to published reports. Walmart does make a convenient scapegoat though, and the company is used to being blamed for a variety of societal ills. However, recent years have seen that pendulum swing back to the middle with initiatives in the areas of sustainability, product safety and hunger earning the company newfound respect among some former critics.