With online retail as big as it is, a lot of brick and mortar places have been struggling. Many retailers have been slashing jobs and closing stores.
Powerhouse Wal-Mart is also eliminating jobs in an effort to cut costs as the company invests in online.
So which employees have to worry? The company’s layoffs will affect the international, technology, and Sam’s Club divisions.
Wal-Mart has already decided earlier this year to cut 1,000 corporate positions, which includes 200 from its e-commerce division.
Company spokesman Randy Hargrove told CNBC, “It’s really a continuation of what we said back in January. It’s all part of managing our costs and our capital.”
Wal-Mart just recently announced that it would be investing more money into digital than any physical store growth.
According to Hargrove, Wal-Mart has eliminated roughly 18,000 jobs since early last year, but many of the affected employees have been reassigned.
Hargrove said, “Well over” 50 percent of the 10,000 of the store employees who lost their jobs due to last year’s store closures were also retained and the company will hire 10,000 workers through new store openings.
Roughly 6,000 of the 7,000 employees who had their back-office positions eliminated were also reassigned, according to Hargrove.
So looks like employees may not need to worry to much.
Disclaimer: We have no position in Wal-Mart Stores Inc. (NYSE: WMT) and have not been compensated for this article.