American retail giant Walmart is in the process of laying off hundreds of employees nationwide while also requiring most remote workers to return to the office and rearrange their work locations.
In a memo issued to employees on Tuesday, Walmart announced the layoffs and reshuffling, instructing the majority of its personnel in offices in Dallas, Atlanta, and Toronto Township, South Dakota, to relocate to the company’s headquarters in Bentonville, Arkansas, offices in Hoboken, New Jersey, or offices in the San Francisco Bay Area, California.
Donna Morris, Walmart’s Chief People Officer, stated in the memo that this move aims to have more employees return to the office post-pandemic. The decision to bring employees back to the Arkansas headquarters was made back in February 2022.
“We believe that being together in person will help us perform better, foster collaboration, innovation, and accelerate our growth,” Morris wrote. “We also believe this will reinforce our culture, promote employee development and growth.”
Morris further mentioned that due to adjustments in certain operations, the company will be reducing several hundred positions.
Walmart will allow for a hybrid scheduling arrangement, meaning employees can work remotely as long as they are in the office for the majority of the workweek.
Walmart did not specify how many individuals will be affected by the layoffs.
This announcement comes just days before Walmart’s financial report release on Thursday.
Walmart is one of the largest private employers in the United States, with 1.6 million employees, most of whom work in stores or warehouses, while tens of thousands work in the company’s various offices.
This round of layoffs is Walmart’s latest cost-cutting measure. In late April, the retail giant announced the closure of 51 health centers it operated in Arkansas, Florida, Georgia, Illinois, and Texas. These health centers provided medical appointment services and were part of Walmart’s healthcare business, established next to Walmart supercenters back in 2019.
The company’s 4,600 pharmacies and over 3,000 vision centers will continue operations.
Walmart stated that employees affected by the impending closure of health centers will be eligible to transfer to any other store within Walmart or Sam’s Club. The company confirmed that they will receive 90 days of pay unless they transfer to another store or leave the company during this time.
After 90 days, eligible employees who have not transferred or resigned will receive severance pay.