US retail giant Walmart announced on Wednesday, May 21, that it will be cutting approximately 1,500 positions as part of an organizational restructuring plan aimed at streamlining operations, cutting costs, and speeding up decision-making processes.
The job cuts will primarily impact areas including the global technology department, e-commerce fulfillment operations in physical stores in the US, and Walmart’s advertising business unit, Walmart Connect.
According to the Wall Street Journal, Walmart executives stated in an internal memo to employees that this restructuring is intended to “reduce organizational layers and complexity, accelerate decision-making, and enhance innovation.” While some positions will be eliminated, the company also plans to create new roles to support its operational goals and growth strategies.
As the largest private employer in the US, Walmart has approximately 1.6 million employees in the country and a total of around 2.1 million employees globally. The layoffs this time mainly target headquarters positions, accounting for approximately 1% of the total US workforce.
This is not the first organizational adjustment Walmart has made this year. In February, the company closed its office in Charlotte, North Carolina, encouraging employees to relocate to its main offices in California and Arkansas to strengthen cross-department collaboration and operational efficiency.
Walmart emphasized that the job cuts are not related to the US-China trade war but are part of internal strategic adjustments and long-term growth plans. The company has pledged to assist affected employees in transitioning to other roles or finding new job opportunities.
Additionally, facing increased costs due to tariffs, Walmart announced it will raise prices on some goods starting at the end of May. This move sparked criticism from President Trump, who believes that companies should absorb costs themselves rather than passing them on to consumers. He pointed out on social media that Walmart made hefty profits last year and should be able to handle the pressure.
According to the latest financial report, Walmart’s first-quarter revenue was $165.6 billion, up 2.5% year-on-year, slightly below expectations. US comparable sales grew by 4.5%, while global e-commerce business increased by 22% year-on-year. Net profit decreased to $4.49 billion, about a 12% drop from the same period last year.
This restructuring of personnel and organization reflects Walmart’s proactive adjustment of strategies to enhance operational efficiency and market resilience in the face of global economic challenges, intense retail competition, and heightened supply chain pressures.