Hundreds of layoffs announced at Walmart

• Walmart announces new layoffs.
• They will layoff at least 200 corporate employees.
• The retailer adjusted their profit outlook for this year.

Walmart Layoffs. The largest retailer in the US is coming up with a new strategy after adjusting its profit outlook as inflation causes consumers to pull back on spending. Now, Walmart has announced they will be laying off 200 corporate employees.

According to Forbes, US stocks closed sharply lower on Tuesday, August 2, 2022 after a Walmart profit warning hurt the retailer’s share prices. They are now coming up with ways to maintain their profits amid the downturn.

Walmart shares plummet

Walmart shares plummeted after the retailer cut its full-year earnings forecast late on Monday, August 1, 2022. Walmart blamed rising food and fuel prices, saying it needed to cut prices to reduce inventories according to Forbes.

Data showed US consumer confidence fell in July to its lowest level in a year and a half, amid lingering concerns about rising inflation and interest rates. Walmart is one of many companies suffering.

Walmart found a solution

According to CNN, Walmart decided to take action on the matter but it will affect the store’s employees. They announced that 200 corporate employees will suffer the ravages of the retailer’s economic struggles.

Given the rumors, Walmart itself stated the following according to CNN: “Updating our structure and evolving select roles to provide clarity and better position the company for a strong future.” Layoffs are rumored to begin this week.

Walmart also had changes in its prices

Walmart said it has been forced to cut costs on various items, including clothing. Walmart also warned that it expects a slowdown in customer spending on general merchandise for the second half of the year, according to CNN.

Given this, it is uncertain whether the layoffs will be confined to the corporate sector or if the millions of employees from other areas will also be on the chopping block.