More and more jobs are on the line and employees are having to look for employment elsewhere. In today’s news, Walmart, WMT +0.61% (WMT, -0.74%) the largest US employer with 1.4 million workers nationwide, is about to eliminate hundreds more jobs at headquarters and in regional offices in its latest move cut down on costs and protect its profits. In September 2016, the retail giant began cutting some 7,000 invoicing and accounting positions within its US stores to redeploy workers to improve in-store customer service, which has been achieving better scores, which is key for Walmart to keep its streak of eight quarters of comparable sales going. In 2015, the company cut 450 jobs at its headquarters.
According to the Wall Street Journal, Walmart will cut most those of jobs before January 31, the end of its current fiscal year. The report suggests that Walmart’s human resource department at headquarters and in regional offices will suffer the most job cuts, rather than stores, given belief among some top executives that such functions can be filled by consultants.
WalMart Stores spokesman Greg Hitt told Fortune in an email statement, “As we’ve previously shared, we are always looking for ways to operate more efficiently and effectively. While we continually look at our corporate structure, we have not made any announcements.” The cuts are smaller in relation to the size of Walmart’s headquarters staff in Bentonville, Arkansas, which employs 18,000 workers.
Walmart is making the move in order to be more efficient in its home and regional office management. And it comes as Walmart is feeling the pinch on its profit margins from wage hikes to store workers ($2.7 billion in the last two years) and enormous investments in e-commerce to compete against Amazon.com AMZN +0.88% (AMZN, -0.20%) and other online stores.
The latest job cuts comes as a number of other retailers are cutting back on payrolls. Macy’s M +1.49% (M, -0.53%) said last week it was cutting 10,000 jobs and closing 68 stores this year, while The Limited this weekend laid off 4,000 workers as it closed all its stores but kept its web site active.
In October, Walmart said it would allocate more of its annual capital expenditure budget to improving e-commerce, including tech in stores, its shopping and payment apps and its web site, and less on stores openings. Thus, it appears to be a sinking ship for employees, as companies like Walmart are cutting costs in its effort to improve its competitiveness and standing in the market.