The world’s biggest retailer, Walmart (WMT) is laying off about 200 corporate employees. The layoffs are affected due as the retail giant issued a rare profit warning also claiming that inflation has made the average American reduce spending.
The layoffs come as consumer confidence dips and inflation reaches record highs. These layoffs are part of a restructuring effort the company hopes will create new jobs over time.
In a statement, Walmart confirmed it is “updating our structure and evolving select roles to provide clarity and better position the company for a strong future.”
A spokesperson for Walmart told that the layoffs will “better position the company for a strong future.”
Doug McMillon, Chief Executive for Walmart said, “The increasing levels of food and fuel inflation are affecting how customers spend, and, while we’ve made good progress clearing hard-line categories, apparel in Walmart U.S. is requiring more markdown dollars.”
A Walmart spokesperson said in a statement, “We’re updating our structure and evolving select roles to provide clarity and better position the company for a strong future.”
“At the same time, we’re further investing in key areas like e-commerce, technology, health and wellness, supply chain, and advertising sales and creating new roles to support our growing number of services for our customers, suppliers, and the business community,” Walmart spokesperson added.
Walmart also warned that it expects a slowdown in customer spending for general merchandise for the second half of the year. Last week, The company has warned that its profit would decline in the current quarter and fiscal year because it was having to mark down apparel and other merchandise that has piled up in its stores.
The retail giant employs over 1.6 million people across its stores and supply chain in the U.S — those workers were not affected by these layoffs.
Recently, many leading companies in the US have laid off many employees. Though employers have been increasing benefits and raising wages and the high inflation have left people in a position where jobs are necessary.