Walmart laid off around 200 corporate employees. The retail giant is pivoting to deal with declining profits and an uncertain economic climate. The company has repeatedly sounded the alarm about inflation and economic uncertainty. Given Walmart's influence and reach, its struggles could indicate industry-wide struggles for retailers.

The world's largest employer has been on its heels throughout 2022 after riding nearly two years of a pandemic high. "A cut of 200 roles is not material in the context of a giant employer like Walmart," John Zolidis, the president of Quo Vadis Capital, told Insider.

Walmart has cut at least 900 corporate jobs this year. The company will rely on deep discounting to rid itself of excess inventory, loungewear, home goods, and electronics. 7-Eleven also recently cut more than 1,000 corporate jobs. Inflation proved to be a boon for Walmart earlier in the year.

Rising prices across the country pushed shoppers to favor discount and value-focused retailers like Walmart. Walmart "seems to be confident that it has the scale necessary to absorb inflation well enough to not pass on significant price increases to their customer," a client partner told Insider in November 2021.

High gas and food prices are affecting how customers spend, Walmart CEO Doug McMillon says. Walmart reported a 32% increase in inventory at the end of last quarter. Store-level employees tell Insider horror stories of pallets rendering floors unwalkable, towering boxes that have blocked access to private breastfeeding rooms and bathrooms.
Posted by BI bizpoke
Tap to Copy the Short Url to This Post: 
One-Stop Business News backed by Mark Cuban. Free to Use →