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: , , ,


Favorite

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

  • DHS continues to reimburse Medicaid managed care company co-owned by Preferred Family Healthcare

    The Department of Human Services continues to use a provider-led Medicaid managed care company that is part-owned by Preferred Family Healthcare, despite a recent decision to cut other ties with the Springfield, Mo.-based nonprofit enmeshed in multiple corruption scandals.
    • Jul 13, 2018
  • State yanks PFH funds

    Another former executive with scandal-plagued mental health provider arrested.
    • Jul 5, 2018
  • Robin Raveendran and Person 9 in the Cranford/Preferred Family Healthcare web

    The federal criminal information released as part of former lobbyist Rusty Cranford's June 7 guilty plea on bribery charges describes a Person 9 who worked for the nonprofit healthcare provider Preferred Family Healthcare and was associated with Cranford. The description of Person 9 appears to match Robin Raveendran, the former PFH executive — and former longtime staffer at the state's Department of Human Services — who was arrested Thursday in a separate case, charged in Independence County with two felony counts of Medicaid fraud after an investigation by the state's Medicaid Fraud Control Unit.
    • Jun 29, 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 administration approves Medicaid waiver for Kentucky, including work requirements

    The Trump administration today approved Kentucky's request for a waiver of Medicaid rules to implement certain changes to its Medicaid expansion program, including work requirements. Next up, Arkansas?
    • Jan 12, 2018
  • Trump immigration protest at LR: Quick and fierce

    It was not even 24 hours ago that Sophia Said, director of the Interfaith Center; City Director Kathy Webb and others decided to organize a protest today of Donald Trump's executive order that has left people from Muslim countries languishing in airports or unable to come to the US at all — people with visas, green cards,a  post-doc graduate student en route to Harvard, Google employees abroad, families. I got the message today before noon; others didn't find out until it was going on. But however folks found out, they turned out in huge numbers, more than thousand men, women and children, on the grounds of the state Capitol to listen to speakers from all faiths and many countries.
    • Jan 29, 2017

Most Recent Comments

Slideshows

 

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