Dive Brief:
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About 450 to 500 of the some 18,000 employees at Wal-Mart’s headquarters in Bentonville, AR, could be laid off this week, according to news reports.
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The layoffs were first reported Wednesday by the Wall Street Journal, and the company has not yet confirmed it. Reuters reports it has seen an internal memo from CEO Doug McMillon that confirms the move.
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In the memo, McMillon said Wal-Mart plans to become a "more nimble organization" and the move is part of a review process that will end with the retailer "pulling back in some areas and investing in others."
Dive Insight:
The news of further layoffs at Wal-Mart, if true, are part of several recent moves by the retailer to shore up its stores and cut costs. The retail giant wants to be in a better position to compete in e-commerce and gain greater wallet share from its customers.
In August, the company lowered its profit forecast for the year in the face of lower earnings and higher labor costs. Its move to raise its hourly wages will cost the company some $1 billion, plus its pharmacy business has declined and the strong dollar is hitting its business abroad.
Investors are clearly expecting more from the retailer; its stock has dropped 26% this year.
