Wal-Mart Prepares to Cut Headquarters Jobs, Sources Say
September 30 2015 - 9:10PM
Dow Jones News
Wal-Mart Stores Inc. is preparing a round of layoffs as early as
Friday that would affect hundreds of employees at its Bentonville,
Ark., headquarters, according to people familiar with the
situation.
Human resources employees have reserved many of the meeting
rooms at the headquarters on Friday as well as small rooms
typically used by suppliers to pitch products to the retail giant,
according to a person familiar with the matter.
Some Wal-Mart department directors were told to cancel travel
this week or make sure they come to the office on Friday, said
another person who spoke with the Wal-Mart employees.
Fewer than 500 workers are expected to lose their jobs. About
18,600 people work for Wal-Mart in the Bentonville region. Wal-Mart
had no immediate comment.
Talk of layoffs at the world's largest retailer has swirled for
months within the tight-knit northwest Arkansas community of
Wal-Mart employees, the company's suppliers, executive recruiters
and others who live in the region.
In August, Wal-Mart cut its earnings outlook while reporting
second-quarter net income fell 15% from the previous year. The
retailer is facing competition on all fronts, from Amazon.com,
traditional grocery stores and discount chains. Wal-Mart executives
have said they are taking a long-term approach to rebuilding the
company, investing heavily in e-commerce, improving stores and
employee wages.
During an earnings conference call in August, Wal-Mart CEO Doug
McMillon said that "for the back half of the year, we will manage
these items closely with a continued commitment to efficiency,
cutting costs where appropriate, even in a period of
investment."
Any layoffs would also ripple through the large consumer-goods
companies that have offices in the region to work closely with
Wal-Mart, often their largest source of revenue. Suppliers
frequently build their teams to mirror counterparts at Wal-Mart,
and many will likely be inundated with resumes from former Wal-Mart
employees, suppliers and consultants said.
Write to Sarah Nassauer at sarah.nassauer@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
September 30, 2015 20:55 ET (00:55 GMT)
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