Dive Brief:
-
Effective last Friday, Jan. 24, Wal-Mart Stores Inc. cut 2,300 jobs, some 2% of the workforce, at its Sam’s Club warehouse division.
-
The cuts include hourly workers as well as management, including devolving six management positions in its fresh food area to three positions, according to Sam’s Club spokesperson Bill Durling. Employees who can’t find other jobs within the company will get a severance package, Durling said.
-
In November, Wal-Mart Stores cut its annual profit forecast, even as it announced that Sam’s Club’s sales grew 1.1% to $14.1 billion in the third quarter.
Dive Insight:
Last November, when Wal-Mart Stores Inc. cut its annual profit forecast, the company cited heavy competition from other discount retailers. This bid for efficiency may help the company’s bottom line, but it may need to take other steps to keep, and win over, budget-conscious consumers.