Walmart reportedly is laying off some corporate employees to “better position the company for a strong future,” according media reports.
Walmart did not confirm the number of job cuts, but the layoffs will reportedly impact about 200 employees across the merchandising, global technology and real estate teams, people familiar with the matter told The Wall Street Journal. However, the retail giant also is investing in new jobs in other areas, such as supply chain, ecommerce, health and wellness and advertising sales, including creating new roles.
Walmart also recently cut its profit outlook as shoppers cut back on discretionary spending due to inflation, which is expected to shift spending from high-margin items like apparel to low-margin items like food and make promotions necessary to move inventory.
The retail giant’s reduced outlook still foresees a 6% comparable store sales increase during Q2 2022, but profits will suffer due to shrinking margins. Noted areas for job growth, like supply chain and health and wellness, could help Walmart maintain its supply chains despite industry-wide slowdowns and find new, more profitable revenue streams.
The news from Walmart comes amid a swath of staff cutbacks at retailers of all stripes and sizes. Allbirds is reportedly cutting 8% of its staff, or about 24 people, “roles and processes in each department, and in each market, to ensure our operating structure is set-up for the next phase of growth,” according to an email seen by Retail Dive.
Glossier also is reportedly reducing its headcount by 24 as part of a streamlined omnichannel strategy, according to WWD. The primarily DTC retailer is making a pivot toward wholesale following an agreement to stock its products at Sephora stores starting in early 2023.
“Glossier’s first chapter was almost exclusively focused on a single channel of distribution,” said Kyle Leahy, CEO of Glossier in a statement sent to WWD. “Now we’ve grown, the marketplace has evolved, and our consumers are looking for us to meet them where they are: in-store, online, at retail partners and around the world. We are reorganizing our company to align our structure, scale and talent with our refined omnichannel strategy. While these decisions are incredibly difficult, I am confident Glossier is positioned for success in its next chapter.”