The retail giant is expected to cut down 7,000 jobs in the near future
Published By: Angela Campbell on January 11, 2017 09:53 am EST
Retail giant Wal-Mart Stores, Inc. (NYSE:WMT) will be cutting down its workforce by the end of this month according to the Wall Street Journal. The layoffs would affect the workforce both in its headquarters and regional force. It was also reported that the round of layoffs will mainly affect the Human Resource Department.
The Wall Street Journal reported that the senior executives are of the view that the department should be more efficient and many of the tasks can be outsourced. However, other departments of the Arkansas based company would also be affected.
According to an email to Reuters by Randy Hargrove, spokesman of Wal-mart he said: "While we continually look at our corporate structure, we have not made any announcements." The company had earlier announced in September last year that it plans to reduce its workforce by 7,000 back office jobs. As a part of a June plan, these job cuts would affect mainly accounting and invoicing positions.
The company is expected to invest a sum of $2.7 billion in training programs along with increasing pay of its workforce. The minimum hourly pay for store workers have increased to $10 as it moves to increase service of its stores to boost sales.
The retailer is said to take this move in order to focus more at its ecommerce business as it moves to challenge the ecommerce giant Amazon.com. The company, in the holiday season sales of 2016, paid more attention to develop its ecommerce business. Wal-Mart is expected to give a hard time to its competitor by this move.
The market share price of the retail giant has been falling since the start of the New Year. The prices fell by 0.67% in the last session as it closed at $68.23. The share prices are far behind their all-time high price of $75.19.