Walmart joins e-commerce layoffs, cutting hundreds of warehouse employees

According to CNBC, on March 23, a Walmart spokesperson confirmed that the company is laying off employees in its e-commerce warehouses across the United States, and is expected to lay off hundreds of warehouse employees. Following Amazon, Walmart is the latest e-commerce giant to announce layoffs.

As high inflation persists and consumer spending shifts from goods to services, U.S. retail giants are generally pessimistic about their performance guidance for 2023, especially after the COVID-19 pandemic triggered a consumption boom. At the same time, several retail giants announced layoffs.

In January, Amazon announced 18,000 layoffs and announced another 9,000 layoffs this month. Amazon has closed, canceled and postponed the opening of new warehouses as some online sales have shifted to physical stores. Another retail giant, Target, plans to cut up to $3 billion in total costs over the next three years.

A Walmart spokesperson confirmed that it is laying off hundreds of employees at five fulfillment centers in Pedricktown, New Jersey; Fort Worth, Texas; Chino, California; Davenport, Florida; and Bethlehem, Pennsylvania.

About 200 workers at Walmart's southern New Jersey warehouse will be affected, according to a notice filed with the state.

Walmart expects slower sales growth and lower profits in the next fiscal year. Online sales continue to grow, but at a slower rate than during the peak of the pandemic. In the most recent fiscal year ending January 31, e-commerce sales in Walmart's U.S. business grew 12%. In comparison, they grew 11% in fiscal 2022 and 79% in fiscal 2021.

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