Walmart Inc. said on Tuesday that it intends to move the majority of its remote workers headquartered in the US and Canada to three offices and eliminate hundreds of jobs at its global headquarters.
After originally supporting remote labor during the epidemic, Walmart Inc. (WMT.N.), which opened a new tab, revealed on Tuesday that it wants to shift the majority of its remote workforce based in the United States and Canada to three offices and reduce hundreds of jobs at its corporate headquarters.
In a message sent on Tuesday to its employees on U.S. campuses, Walmart’s chief people officer, Donna Morris, stated, “We are asking the majority of associates working remotely, and the majority of associates within our offices in Dallas, Atlanta, and our Toronto Global Tech office, to relocate.”
With 2.1 million employees nationwide, this is the largest retailer in the world and the largest private employer in the nation. The majority of the relocations will take place at its headquarters in Bentonville, Arkansas, with a smaller number going to its offices in the San Francisco Bay Area or Hoboken, New Jersey.
Morris stated in the message that the move was intended to strengthen Walmart’s culture and advance the careers of its employees, in addition to bringing individuals together more frequently.
The retail behemoth added, without providing more details, that it was cutting “several hundred” positions at its head office as a result of adjustments in some areas of its operations.
According to a source familiar with the situation who spoke on condition of anonymity, remote workers were given until July 1 to decide whether to relocate or to leave with severance pay during a “business update” call with colleagues on Monday. The source also stated that later this year, Walmart would be closing its locations in Toronto, Atlanta, and Dallas.
Severance money equal to two weeks’ salary for each year of employment at Walmart will be given to departing employees, the person said.
Walmart stated that it held conversations with the directly impacted employees and would collaborate with them on the next actions.
A NEW USUAL?
Walmart is moving away from years of pandemic-induced remote employment and toward more in-person work, similar to other American corporations.
“We think that working virtually will become the new norm in the tech industry, at least for the majority of the work we oversee,” stated Suresh Kumar, the worldwide head of Walmart’s tech operations, on LinkedIn in 2021.
But it has gradually moved away from its stance. It invited certain employees to relocate to major corporate centers after closing three tech offices in 2023.
Walmart is building a new headquarters in northwest Arkansas in the interim; it will open in phases in 2025 and is located not far from its old location.
According to Walmart’s website, the vast 350-acre facility is built to house nearly 15,000 employees over 12 buildings.
“This is probably only a small portion of a larger effort to improve operational efficiency. The closest thing to a layoff is forcing remote workers to report into the office, according to chief economist Brian Jacobsen of Annex Wealth Management, which manages mutual funds and exchange-traded funds (ETFs) that hold Walmart.
“Offering individuals the option to move to a hub isn’t really an option. More so, it’s a decision of whether to give up,” Jacobsen continued.
On Thursday, the store is scheduled to release its first-quarter earnings. Tuesday afternoon saw a 1% decrease in Walmart shares, which were trading at $59.77.
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