Walmart is cutting 200 corporate jobs as profits fall with inflation
The company warned last month that as Americans tighten their belts on general merchandise to cover basic necessities, profits are expected to decline
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Your support makes all the difference.Walmart is cutting more than 200 corporate jobs as inflation puts strain on the company’s bottom line.
The Wall Street Journal first reported on the measure on Wednesday. Walmart, the largest employer in the US, said that Americans are tightening their belts on general merchandise to cover necessities like groceries amid spiking inflation, largely affecting profit.
A Walmart spokesperson toldThe New York Times in a statement that the retail giant is “updating our structure and evolving select roles to provide clarity and better position the company for a strong future”.
The company is reportedly investing in other areas including e-commerce and technology, the Times also reported. Walmart announced in June the purchase of 4,500 Canoo electric delivery vehicles to be used for last mile deliveries anticipated to begin in 2023.
In July, the retailer also acquired Memomi, an augmented reality optical tech company. Walmart said the acquisition will allow customers to offer “frictionless virtual optical try-on capabilities and contact-free digital measurements.”
Last month, the retailer, which currently employs nearly 1.6 million people in the US, revised its outlook for profit for the second quarter and full-year, warning that while groceries sales had increased, profit would decline as the company had to mark down merchandise piled up in stores.
“The increasing levels of food and fuel inflation are affecting how customers spend, and while we’ve made good progress clearing hardline categories, apparel in Walmart US is requiring more markdown dollars,” Walmart CEO Doug McMillon said in a statement.
“We’re now anticipating more pressure on general merchandise in the back half; however, we’re encouraged by the start we’re seeing on school supplies in Walmart US.”
The Independent has reached out to Walmart for comment.
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