Walmart is planning to cut hundreds of jobs and close its North Carolina office in an effort to bring workers back to its main hubs in Arkansas and California.
Chief People Officer Donna Morris sent a memo to employees on Tuesday, informing them that the company – the largest private employer in the United States – is eliminating some of its roles, Fox Business reports.
She also asked office-based employees in Hoboken, New Jersey and some of its smaller offices to relocate to its headquarters in Bentonville, Arkansas as well as its offices in Sunnyvale, California.
‘We are making these changes to put key capabilities together, encouraging speed and shared understanding,’ Morris wrote in the memo obtained by Fox Business.
‘Through this review process, we have eliminated some roles as we streamline how we work.’
‘Our values and culture are strategic differentiators for us as a company, and they are fostered by being together,’ she continued.
‘We’ve already seen the benefits of having more teams working together in person, and today we are sharing another step that will help accelerate our momentum.’
It is unclear exactly how many of Walmart’s 1.6million US employees will be affected, but those who are asked to relocate will have at least a month to inform the retail giant of their move.
Walmart is planning to cut hundreds of jobs and close its North Carolina offices in an effort to bring workers back to its main hubs in Arkansas and California
Chief People Officer Donna Morris said the company will help all of the affected employees ‘navigate the path forward, including providing relocation support or severance’
The company will then help all of the affected employees ‘navigate the path forward, including providing relocation support or severance,’ Morris said.
Tuesday’s announcement comes as part of a larger relocation strategy Walmart unveiled in May, when it asked employees in Dallas, Texas; Atlanta, Georgia; and Toronto to move to its corporate headquarters, its Hoboken offices or the Sunnyvale location.
Any employee who was still working remotely at the time was also called back into the offices.
Walmart had begun requiring workers to return to the office in February 2022, arguing it fosters collaboration, innovation and faster work processes, while also strengthening company culture.
At around the same time, the company started construction on its new 350-acre campus in Bentonville, which officially opened last month.
Walmart is now also in the process of opening new office spaces in Sunnyvale and Bellevue, Washington, while expanding its offices in Hoboken and its fashion office in New York City.
The retail giant had previously announced its lofty goal of having 65 percent of its stores automated by 2026.
It is unclear exactly how many of Walmart’s 1.6million US employees will be affected
The retail giant had previously announced its lofty goal of having 65 percent of its stores automated by 2026
About 55 percent of packages that it processes through its fulfillment centers would be moved through automated facilities by January 2026, improving unit cost averages by about 20 percent, the company said in a 2023 filing.
‘As the changes are implemented across the business, one of the outcomes is roles that require less physical labor but have a higher rate of pay,’ the retail giant wrote at the time.
‘Over time, the company anticipates increased throughput per person, due to the automation while maintaining or even increasing its number of associates as new roles are created,’ it added.
But just last month, Walmart announced that its top-performing regional managers will get the chance to earn between $420,000 and $620,000 following the company’s decision to increase its bonus and stock awards.
The company’s new 350-acre campus in Bentonville, Arkansas opened last month
The new salaries mark a major raise compared to the $320,000 to $570,000 salaries for regional managers in 2023.
The retailer also said it will be boosting its minimum base pay to $160,000 – $32,000 more than it was two years ago.
The maximum amount of base pay a regional manager can make this year is now $260,000.
The new salary and base pay are not the only life-changing policies that Walmart implemented in its operations.
Stock grants for regional managers (also known as market managers) will also rise to $100,000 from $75,000 a year, and potential bonuses will be 100 percent of base pay instead of 90 percent from 2023.
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