Major Layoff’s For Sam’s Club

February 19, 2014

Wal-Mart Inc. announced 2,300 layoffs from their wholesale retailer Sam’s Club, nearly 2% of their current workforce. The layoffs included predominantly middle management and hourly employees. Some departments are losing as much as 50% of their management team. The company also stated that the management remaining would receive a pay raise. Wal-Mart spokesman said, “We’re trying to rebalance our resources.”

Employees affected by the layoff will receive 60 days’ pay and are encouraged to seek employment at other Wal-Mart and Sam’s Club locations, if employees cannot find new jobs after 60 days they will be eligible for severance.

The layoffs may come as a shock to some since Sam’s Club recently opened new locations in Rhode Island and North Carolina on January 23rd just days before the announcement. Wal-Mart, Sam’s Club’s parent company, also announced January 22nd the creation of nearly 100 job positions at a new Walmart Neighborhood Market opening in Florida.

It can be assumed that Wal-Mart Inc. isn’t downsizing but restructuring to better compete with their competition including Costco and online retailers who also are taking measures to dominate the ‘one stop’ retail market.

For More:

Walmart News

Walmart Will Lay Off 2,300 Sam’s Club Workers

Sam’s Club News