Walmart To Cut Hundreds of Jobs, Force Workers to Arkansas or California

Walmart is cutting “hundreds of jobs” and forcing workers to relocate to one of its main hubs in Arkansas or California in an effort to cut costs.

Bloomberg reports that the retail giant is urging employees in Hoboken, New Jersey, and other smaller locations to transfer to its headquarters in Bentonville, Arkansas, or Sunnyvale, California.

According to the internal memo viewed by the outlet, Walmart is also closing its Charlotte, North Carolina, office and reducing corporate roles as part of the process. Someone familiar with the situation also says hundreds of positions are being terminated.

“We are making these changes to put key capabilities together, encouraging speed and shared understanding,” Donna Morris, chief people officer at Walmart, wrote in the memo.

Last year, the retail giant requested staff in Dallas, Atlanta, and Toronto to relocate to larger hubs, with the majority moving to the main office in Bentonville.

Do Walmart Retail Managers Need a Raise?

This consolidation news follows the retail giant’s announcement that it is increasing the pay of regional store managers to more than $600,000, while also cutting some perks for office managers.

Market managers, who oversee groups of approximately 12 Walmart locations, could earn between $420,000 and $620,000 this year if they receive their full bonuses. According to the WSJ, this is an increase over last year’s compensation range of around $320,000 to $570,000.

These managers’ stock grants will increase from $75,000 to $100,000 per year, while their possible yearly incentives will be 100% of their basic salary, up from 90%. The minimum base wage for the post will increase to $160,000 per year, up from $130,000, while the maximum base income will stay at $260,000 per year.

“Walmart’s changes show that its midlevel-management jobs are still key,” wrote Sarah Nassauer, the WSJ’s retail reporter. “A market manager plays a hands-on role in running around a dozen massive stores that often employ around 300 workers apiece. The job involves long hours and many miles on the road visiting stores to check-in on staff and merchandise.”

“This role — which oversees multiple stores — is key for our business and for serving our customers however they shop,” Walmart said in a statement to Axios. “This is the latest in a series of investments in hourly and salaried roles across Walmart U.S.”