Walmart CPO talks business ‘changes’ and ‘best path forward’ as it cuts hundreds of jobs and closes stores

WALMART Chief People Officer Donna Morris confirmed hundreds of layoffs.

Walmart’s top executive made the announcement Tuesday in a memo sent to all of the retailer’s employees.

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“It has been just over four years since we faced the global pandemic that has reshaped our lives in so many ways, including the ways we work,” Morris, 52, wrote in a statement obtained by Quartz.

“In February 2022, we made the decision to bring Home Office associates back to our on-campus offices,” the statement continued.

“We believe that being together, in person, makes us better and helps us collaborate, innovate and move forward even faster.”

“We also believe it helps strengthen our culture as well as grow and develop our associates,” Morris said.

In the memo, Morris revealed that higher-ups would begin asking most remote employees at the Dallas, Atlanta and Toronto offices to move closer to the company’s headquarters in Arkansas.

Morris also noted that some may be asked to move closer to their offices in the San Francisco Bay Area or the Hoboken, New Jersey/New York region.

“Additionally, some parts of our business have made changes that will result in the reduction of several hundred campus roles,” the statement continued.

“While the overall numbers are small in percentage terms, we are focused on supporting each of our associates impacted by these changes.”

“We had discussions with associates who were directly impacted by these decisions. We will work closely with them in the coming days and months to navigate the best path forward,” concluded Morris.

The announcement comes just one day after a Wall Street Journal the article cited the impending layoffs.

Neither the article nor Morris’ memo indicated when the personnel changes would occur.

In addition to the looming job cuts, Walmart has officially closed all 51 of its health centers.

Before the layoffs broke, Walmart confirmed that eight stores in four states would close in 2024.

Although a reason was not given for two of the stores, it was revealed that the stores in Maryland and Ohio were selected because they did not meet financial performance expectations.

Those affected by the layoffs are eligible to transfer to any other Walmart location, Business Insider reported.

Walmart’s massive staff cuts also come as the company struggles to increase automation in its stores and warehouses.

Walmart stores closed in 2024

So far, Walmart has closed the following stores in 2024:

• San Diego, California – February 9
• El Cajon, California – February 9
• Columbus, Ohio – February 16
• West Covina, California – March 29
• Towson, Maryland – April 5
• Granite Bay, California – April 12
• Milwaukee, Wisconsin – May 19
• Fremont, California – May 24

Last month, the company revealed its plan to make 65% of its current stores fully automated by the end of Walmart’s 2026 fiscal year.

“As changes are implemented across the company, one of the results is roles that require less physical labor but are higher paying,” Walmart wrote in a document.

The retailer hopes an increase in efficiency will help improve Walmart’s growing e-commerce business and inventory management.

“We are uniquely positioned to serve our customers and members the way they want, which will drive continued growth,” said Walmart CEO Doug McMillon.

Walmart’s layoffs also come as they struggle to compete with Amazon for the title of America’s largest revenue-generating company.

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