Walmart to cut 1,000 corporate jobs | Arkansas Blog

Saturday, January 13, 2018

Walmart to cut 1,000 corporate jobs

Posted By on Sat, Jan 13, 2018 at 2:11 PM

click to enlarge BAD NEWS FOR NORTHWEST ARKANSAS: Walmart reportedly set to lay off 1,000 workers.
  • BAD NEWS FOR NORTHWEST ARKANSAS: Walmart reportedly set to lay off 1,000 workers.

For whatever reason, Walmart isn't crediting the GOP tax bill for this decision, but the Wall Street Journal reports that the company is set to cut 1,000 jobs, primarily hitting the retailer's headquarters in Bentonville: 

The job cuts are expected to be broad-based, focused on workers primarily at the company’s headquarters. ... The cuts are expected to be completed by the end of the company’s fiscal year on Jan. 31. ...

“We’ve been looking at our structure for some time as we explore ways to operate more effectively,” a Wal-Mart spokesman said, without confirming that job cuts are planned this month.
These pink slips come on top of around 10,000 store jobs being cut as Walmart closes 63 Sam's Club stores.

The retailer is reportedly cutting costs and stores in an effort to invest more in e-commerce to compete with Amazon.  It also closed more than 150 stores in 2016 and has reduced the pace of new openings.

Walmart has not yet confirmed the new round of layoffs. The retailer also cut around 1,000 administrative employees a year ago, around half of them in Bentonville, and cut around 300 informations systems positions in April.

The news comes the day after Walmart trumpeted a one-dollar boost in its minimum starting wage and bonuses starting at $250 for employees who have worked for the company for at least two years. The company dubiously claimed these moves came in response to the GOP tax bill, which handed a windfall of billions of dollars to the retail behemoth. As analysts in the Journal and elsewhere have pointed out, the costs of these moves were a tiny fraction of the mammoth tax benefit, which will likely amount to around $2 billion per year — and Walmart was almost certainly going to hike wages regardless of the tax cut because of competition for low-skilled hourly employees. Indeed, Walmart made similar wage hikes in 2015 and 2016; CEO Doug McMillon told shareholders in October, months before the tax cut passed, that he expected wages to keep rising because of a tight labor market; new minimum wage laws in a number of states are above Walmart's previous floor; and as the Journal reported on Thursday, "Wal-Mart already has a 'sizable' group of stores paying employees at least $11 an hour and already had plans to increase wages in some stores during its coming fiscal year, which starts Feb. 1, according spokesman Kory Lundberg." It is certainly happy news that Walmart is incrementally increasing its wages, but the notion that this only happened because the Trump administration handed the company a massive tax windfall strains credulity. That was just a PR gambit to try to sell the country on corporate tax cuts.

There's no positive spin, meanwhile, to put on this year's round of layoffs. Many of the jobs are presumably well-paid positions so this could amount to a significant economic hit in Northwest Arkansas.

Tags: , , ,

Sign up for the Daily Update email

Comments (4)

Showing 1-4 of 4

Add a comment

Subscribe to this thread:
Showing 1-4 of 4

Add a comment

More by David Ramsey

  • Authorities investigate accusation against Dean Elliott

    An accusation has been lodged against Dean Elliott, the Dillard's lobbyist and former state representative who is running for the District 15 seat in the state Senate, by a woman who claims that he was involved in a 2016 hit and run incident on Tennyson Drive in Conway that left her with severe injuries. Through a lawyer, Elliott says the allegation is false and politically motivated.
    • May 17, 2018
  • Rep. Jana Della Rosa disputes that Randell Shelton's Paradigm Consulting was a "bogus company"

    During the trial of former state Sen. Jon Woods and consultant Randell Shelton, the prosecution described Shelton's Paradigm Strategic Consulting as a "bogus company." But Rep. Jana Della Rosa, who paid Paradigm in 2014 for help with campaign messaging, said that Shelton did legitimate work for her.
    • May 16, 2018
  • A senator's vanity

    Spotted in Little Rock...
    • May 16, 2018
  • More »

Readers also liked…

  • Women's March planned in Arkansas to mark Trump inauguration

    Speaking of Donald Trump and in answer to a reader's question: There will be a women's march in Arkansas on Jan. 21, the day after inauguration, as well as the national march planned in Washington.
    • Dec 30, 2016
  • Trump's strangulation of Obamacare

    If he can't kill it outright, Donald Trump will do all he can to cripple Obamacare. Vox has detailed reporting on deep cuts in federal spending that support nonprofit agencies that help people sign up for coverage under the Affordable Care Act.
    • Sep 18, 2017
  • Your daily dose of Jason Rapert

    Sen. Jason Rapert really, really didn't like it when a KATV reporter asked him about the hypocrisy of his political arguments.
    • Feb 4, 2017

Most Recent Comments



© 2018 Arkansas Times | 201 East Markham, Suite 200, Little Rock, AR 72201
Powered by Foundation