Walmart is axing approximately 1,000 corporate jobs this month.
According to an unnamed source, the retail giant started its round of corporate layoffs on Friday, The Wall Street Journal reported. The first set of layoffs occurred at Walmart’s Bentonville, Ark. headquarters and affected supply chain employees. On Tuesday, Walmart also cut 200 e-commerce positions at its California offices. Walmart executives told the Journal that additional human resources and technology jobs will also be eliminated by the end of the month.
On Friday, Walmart CEO Doug McMillion wrote a memo to staff, which addressed the layoffs and highlighted how the company planned to minimize expenses and focus more on in-store and e-commerce operations.
“To fuel our growth and our investments we have to manage our costs,” McMillion said. “From time to time, you’ll see the company eliminate positions in an effort to stay lean and fast.”
Walmart’s layoffs reflect the company’s difficulty with streamlining operations and promising more U.S. jobs under the Trump administration. Despite executing corporate layoffs, Walmart recently announced that it will add 34,000 new jobs in 2017. In addition to creating new retail and e-commerce jobs, Walmart also plans to invest in U.S. suppliers and the textile industry.
For the third quarter ended Nov. 17, 2016, Walmart reported a total revenue of $118.2 billion, which was a 0.7% increase from the third quarter 2015. The company also achieved a 1.2% increase in U.S. comp sales and a 20.6% increase in e-commerce sales. Walmart’s consolidated operating income also decreased by 10.4%, due to currency exchange rate fluctuations and the company’s investment in people and technology.