In a bold move to overhaul its operations, Walmart Inc (NYSE:WMT) recently made significant changes by downsizing its workforce and relocating employees to central offices in Arkansas or California. The retail giant informed its employees at offices in Hoboken, New Jersey, and other smaller locations to move to its headquarters in Bentonville, Arkansas, or Sunnyvale, California, according to a memo cited by Bloomberg. Donna Morris of Walmart explained that the purpose of this move was to streamline the company’s corporate footprint. Additionally, Walmart announced the closure of its office in Charlotte, North Carolina, and a reduction in corporate roles.
This restructuring effort follows a similar initiative from last year when Walmart encouraged employees in Dallas, Atlanta, and Toronto to relocate to larger hubs, primarily the Bentonville office. Walmart’s expansion plans include opening new office spaces in Sunnyvale and Bellevue, Washington, by 2025, apart from enhancing its campus in Bentonville.
In response to challenges in filling managerial roles at its retail and restaurant establishments, Walmart has increased bonuses and stock awards for regional store managers. Meanwhile, reports have surfaced about e-commerce giant Amazon.Com Inc (NASDAQ:AMZN) shutting down its physical stores due to profitability concerns. Amazon has halved its Amazon Go stores to 16 locations across four states and is now offering its innovative “Just Walk Out” technology to other retailers. The company has also closed numerous branded retail stores recently.
In a separate development, Kohl’s Corp (NYSE:KSS) recently announced a workforce reduction of 10%, affecting around 400 employees, shortly after a change in leadership with Ashley Buchanan taking over as CEO. The downsizing coincided with plans to shut down a fulfillment center in San Bernardino. Kohl’s third-quarter performance and fiscal outlook fell short of expectations, disappointing investors.
Walmart Canada has committed $6.5 billion to its operations over the next five years, with plans to launch five new Supercentres by 2027. This move comes in the wake of Amazon’s decision to withdraw its operations in Quebec. Notably, Walmart’s stock has seen a significant increase of over 79% in the past year, drawing positive comments from financial expert Jim Cramer. Last December, reports emerged that Walmart was piloting a program to equip its store-level employees across the U.S. with body cameras.
As of the latest check on Wednesday, WMT stock was up 1.25% at $102.23. Ferrari’s fourth-quarter earnings exceeded estimates, with the CEO highlighting robust growth prospects for 2025. For more stock analysis and market insights, consider using Benzinga Pro – a leading trading tool for investors.
*This article on Walmart’s workforce transformation and operational consolidation was originally published on Benzinga.com. All rights reserved.*
