Walmart cuts 200 corporate jobs as costs, inventory sap profit

This post was originally published on this site

Walmart is eliminating about 200 corporate jobs as it contends with rising costs, bloated inventories and weakening demand for general merchandise. 

The cuts include staffers in merchandising and technology, said people familiar with the matter, who asked not to be named because the matter is private. Walmart will also add an unspecified number of jobs in areas such as e-commerce, health and wellness, ad sales and supply chain, said one of the people.

“We’re updating our structure and evolving select roles to provide clarity and better position the company for a strong future,” the company said in an email. “At the same time, we’re further investing in key areas and creating new roles to support our growing number of services for our customers, suppliers and the business community.”

The retail giant is tightening its belt a week after slashing its annual profit forecast for the second time in less than three months. US consumers are buying less clothing and durable goods as soaring inflation raises the cost of food and basic items. That’s prompting Walmart to cut prices on general merchandise even as grocery sales — which are less profitable for the retailer — continue to soar. 

The shares fell 0.5% in extended trading. The job cuts were first reported by the Wall Street Journal.

Walmart has a US workforce of almost 1.6 million people, according to its website. The Bentonville, Arkansas-based company is the country’s largest private-sector employer.