Walmart is laying off hundreds of corporate employees and requesting remote workers return to central offices nationwide, according to a Tuesday memo seen by Footwear News.
In-Office Mandates to Home Office Associates
In the memo, Walmart's chief people officer, Donna Morris, informed employees that Home office associates in smaller offices in Dallas, Atlanta, and Toronto would be required to relocate closer to its more significant hubs in Bentonville, Arkansas; Hoboken, New Jersey; and Northern California. However, they will still be able to work on a hybrid basis.
Certain parts of the business have also changed, leading to the reduction of several hundred campus roles. While the overall percentage of affected employees is small, the company is dedicated to supporting each associate impacted by these changes. Walmart did not disclose the number of individuals impacted by the closures, which comes ahead of Walmart's highly anticipated earnings report scheduled for Thursday.
In recent months, the practice of companies altering employees' working requirements, such as office mandates, has been termed quiet firing. In numerous instances, organizations encourage employees to resign rather than resort to layoffs.
Walmart Being The Latest to Push In-Office Requirement
Walmart is the latest company to enforce an in-office requirement, marking a shift from the pandemic's remote and flexible working arrangements for employees. Nike became the first major shoe company to publicly announce a return to the office four days a week in January, departing from the typical three-days-in-office hybrid model adopted by most shoe companies in the post-pandemic era. Meanwhile, companies like Adidas and Crocs have retained their flexible hybrid models since the pandemic, with some experiencing success while allowing employees to work fully remotely.
Walmart's Layoff Trend Due to Cost-Cutting Measures
Walmart also revealed plans to shut down two more stores last week, bringing the total number of store closures to eight for 2024. The layoffs represent the most recent cost-cutting measure for the retailer when the company disclosed its plans to close 51 health clinics across Arkansas, Florida, Georgia, Illinois, and Texas in April. These clinics, which provided services such as doctor, dentist, and therapy appointments, were part of Walmart Health, an initiative to reduce prices in the healthcare industry. Walmart stated on its website that the venture was not financially sustainable despite being initially positioned adjacent to its big-box stores.
Walmart holds the title of the nation's largest private employer, with approximately 1.6 million employees, the majority of whom work at its stores throughout the country.
Walmart is also currently building a nearly 350-acre campus, another reason to relocate more employees to Bentonville. This significant development, already in progress, comprises 12 office buildings, parking lots, a hotel, and various amenities. Several buildings on the campus, including a fitness center and a daycare facility, are already operational.
The Wall Street Journal initially reported the layoffs and relocations.
