Walmart has let go of hundreds of corporate employees to restructure the company. This decision came over a week after the largest retailer in the U.S. had cut its profit outlook for the second quarter and second half of the year due to high inflation.
After seeing a suffering profit rate as the global economy worsens, Walmart realized that customers in the U.S. prioritize food and gas, decreasing the profit that the company typically receives from other merchandise.
Walmart confirmed the corporate layoffs on Wednesday but didn’t specify how many workers will be affected. The retail giant assures its customers that they are restructuring and hiring workers in advertising, e-commerce, and supply chain areas. Walmart also intends to create new roles in this process.
Walmart is not the only retailer to see its profit go down. After Walmart issued last week’s profit warning, stocks in other major companies like Amazon plunged. Target, Best Buy, and Bed Bath & Beyond are other notable companies in similar positions.
Walmart is the largest retailer and employer in the U.S. and is viewed as an indicator of the country’s economic state. Although Walmart was not the only major company to initiate layoffs, investors are keeping a close eye on Walmart’s situation due to the retailers’ significant relevance in the U.S. market.