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.