Retail behemoth Walmart is reportedly planning to lay off over 2,000 employees from five of its e-commerce warehouses in various states across the US, as per a report by Bloomberg. The report states that more than 1,000 workers at a warehouse in Fort Worth, Texas, will be affected by the job cuts, with additional layoffs expected in states such as New Jersey, Florida, Pennsylvania, and California.
At this point, Walmart has refrained from releasing an official statement on the job cuts. The move comes in the wake of the retail giant shutting down several of its stores, which may have led to a subsequent impact on the e-commerce business. The company’s e-commerce operations have been booming after the pandemic, but some of its warehouses may have been hit harder than others.
Walmart announced the closure of five of its big-box stores
After Walmart closed five big-box stores and its last two remaining pickup-only locations, citing lackluster revenues, its employees at five e-commerce warehouses were given a 90-day notice to secure new positions at other company locations. However, in a recent development, more than 2,000 jobs across the five e-commerce warehouses are now set to be axed.
The layoffs will impact over 1,000 employees at a single warehouse in Fort Worth, Texas, while other job losses are expected across various other states such as New Jersey, Florida, Pennsylvania, and California. Walmart has not yet issued an official statement regarding the job cuts, but it is believed that the store closures may have contributed to the decision.
Other popular brands are also doing significant layoffs
While Walmart’s e-commerce business has been performing well during the pandemic, some of its warehouses may have been affected more than others. As a result, the retail giant is taking steps to streamline its operations and reduce costs. It remains to be seen what impact these job cuts will have on Walmart’s overall business performance in the coming months.
The US retail industry has been experiencing a retail apocalypse, with more than 800 stores set to close this year alone. Popular brands such as Bed, Bath and Beyond, Gap, and Party City are forced to take cost-cutting measures due to severe inflation, leading to store closures across Illinois, Wisconsin, New Mexico, Florida, and Arkansas. In total, 12 stores across nine states are expected to be affected.
The trend has also impacted Walmart, which had previously owned over 1,500 stores across America. The retail giant has announced plans to reduce its store count to just 480 by the end of the year. This move comes after the company identified at least 416 stores across the US for closure and the 65 stores in Canada that are also set to be shut down.
