Walmart Confirms 1,200 Layoffs as Part of E-Commerce Reorganization

Walmart has confirmed the layoffs of more than a thousand workers as part of a previously announced reorganization of its business.

According to Worker Adjustment and Retraining Notifications filed in Arkansas and New Jersey, 1,241 roles at the big-box chain will be eliminated. The company’s headquarters are based in Bentonville, Ark., while the offices for its Jet.com subsidiary are located in Hoboken, N.J.

In an email to FN, Walmart said the job cuts are intended to boost its omnichannel operations. Back in July, it revealed plans to undergo a restructuring of its business in the United States by consolidating divisions and getting rid of some managerial positions.

“As a part of taking those difficult steps, some office associates are affected if they are unable to find a different role with the company,” spokesperson Anne Hatfield said.

Walmart added that the affected workers will receive pay and benefits through the end of January. They also have access to services that can help them find another role at the retailer. “Those who take new roles at Walmart will receive one year of salary protection and their target bonus for the year,” Hatfield explained. “In the case of associates who do not assume a new role in the coming months, they will receive their target bonus for the year, transition benefits and severance, as eligible.”

The changes come amid Walmart’s ongoing effort to consolidate its brick-and-mortar and e-commerce operations, as well as boost its U.S.-based online business, which recorded a 79% spike in the third quarter. Unlike other retailers, which have grappled with months-long store closures and a decline in consumer discretionary spending, Walmart saw heightened demand during the coronavirus pandemic as panicked shoppers loaded up on household goods and other essentials.

The influx of shoppers has led Walmart to hire by the masses at a time when a record number of jobs are being shed elsewhere. Since March, when the COVID-19 outbreak took hold in the U.S., the company has employed more than 500,000 new associates across its stores and supply chain. It also made plans to hire another 20,000 people for seasonal roles at its e-commerce fulfillment centers ahead of the holiday shopping season.

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