Walmart is allegedly trimming down its staff at the end of January.
An anonymous source said the retailer may cut more jobs from its human-resources department to streamline operations and minimize costs, Bloomberg reported. The source said this move could eliminate hundreds of positions as Walmart works to improve its financial outlook.
Last year, Walmart proposed an extensive restructuring plan which could possibly reduce 7,000 desk jobs between September 2016 to February 2016. The plan would bring more people on the shop floor and reduce omnichannel expenses.
“We need to manage expenses even better, which includes changing how we do work inside the company,” Walmart CEO Doug McMillon told investors in October. “We have a lot of conversations these days about priorities.”
Walmart also faces ongoing competition with other retail giants, including Costco Wholesale Corp and Amazon’s footwear site, Zappos.com. Although Walmart acquired Jet.com for $3 billion in August and online footwear e-tailer ShoeBuy on Jan. 5, the retailer is still paying for its digital presence expansion.
In November, Walmart’s shares (WMT) decreased more than 4 percent after the company reported disappointing third quarter results. Investments in e-commerce and labor caused Walmart’s profits to decrease by 8.2% to $3.03 million. Although revenue increased by 0.7% to $118.2 billion and digital sales increased by 20.6%, net sales in Walmart’s international business fell 4.8% and diluted earnings per share were 98 cents compared to $1.03 in 2015.