Report: Discount giant plans to cut thousands of corporate, co-manager positions
Walmart just announced that it plans to hand out thousands of pink slips across its corporate office, as well as at store-level.
The discount giant is planning to eliminate more than 1,000 corporate jobs, according to CNBC, which cited The Wall Street Journal. (The Wall Street Journal first broke the story.)
According to the Journal, the job cuts, which are expected to focus on workers in various roles at the company’s Arkansas headquarters, are expected to be completed by the end of the company’s fiscal year on Jan. 31.
Walmart also plans to slash about 3,500 store co-manager positions. These salaried employees act as a lieutenant underneath each store manager. All co-managers were expected to be notified Friday, Jan. 12. They are eligible to apply for other roles, according to Bloomberg.
To offset these lay-offs, Walmart also plans to add approximately 1,700 assistant store managers. A slightly lower-paid role, these employees will be tasked with overseeing fast-growing areas, like online orders, the report revealed.
Both announcements come on the heels of Walmart’s decision to close 63 Sam’s Club stores across the United States. The closings, which will happen during the next few weeks, will leave the company with 597 Sam’s Clubs locations.
Ikea strengthens distribution network
Home furnishings retailer Ikea is adding to its fulfillment capabilities.
The company announced it has leased additional warehouse space to serve as a customer fulfillment center. The 975,000-sq.-ft. leased facility is part of Matrix Global Logistics Park in Staten Island and will be operational in late 2018.
The new center will complement Ikea’s network of seven regional distribution centers, which are currently supporting its 47 U.S. stores. It will focus on delivering items to customers who order products online or purchase larger items at an IKEA store. The site will be operated by CIVA Logistics, which is currently working with Ikea at customer distribution centers in the United Kingdom.
“As we expand across the country and grow our online presence, we want to ensure we have sufficient warehouse capacity to support the efficient and timely delivery and shipment of products to our customers,” said Lars Petersson, Ikea U.S. president. “Our goal is to increase accessibility to Ikea products, and a new fulfillment center in Staten Island will help us meet the home furnishing needs of our customers in the New York metropolitan area.”
Walmart closing 63 Sam’s Club locations
Walmart is trimming its Sam’s Club portfolio of wholesale club stores.
On the same day that Walmart announced it was boosting its minimum wage, expanding benefits and providing a cash bonus, news came out that the discounter will close 63 Sam’s Club across the United States, with several locations closing their doors as early as Thursday, according to CNBC and other media outlets. About 10 to 12 of the locations slated to be closed will be converted into regional e-commerce fulfillment centers.
Walmart did not say how many workers would lose their jobs as a result of the Sam’s Club closings. But Business Insider put the total at more than 11,000, citing that each Sam’s Club employs roughly 175 people.
Sam’s Club itself tweeted the news about the closings.
“After a thorough review of our existing portfolio, we’ve decided to close a series of clubs and better align our locations with our strategy,” the tweet read.
In a note to staff, Sam’s Club president and CEO John Furner said that a review found stores that were hindering business at other locations, or operating in areas that had not seen the population growth that was expected.
“We’ve decided to right-size our fleet and better align our locations with our strategy,” he wrote.
There are about 650 Sam’s Club locations in the United States and Puerto Rico.