Walmart is shaking up its workforce. The retail giant is cutting hundreds of jobs and closing its office in North Carolina. This is part of a bold new strategy aimed at moving employees back to key hubs in Arkansas and California.
Changes announced by Chief People Officer
Donna Morris, Walmart’s Chief People Officer, broke the news in a memo to employees on Tuesday. She revealed that some roles would be eliminated as the company restructures its workforce. The move affects workers at smaller offices, including those in Hoboken, New Jersey. These employees will need to relocate to Walmart’s headquarters in Bentonville, Arkansas, or the Sunnyvale, California, office.
Focus on speed and collaboration
Morris explained that the restructuring is aimed at fostering faster work and collaboration. Walmart believes that bringing teams together in person boosts productivity. “We are making these changes to put key capabilities together,” Morris wrote. She emphasized that in-person teamwork accelerates momentum and strengthens company culture.
How many employees will be affected?
Walmart employs 1.6 million people across the U.S. It’s unclear how many workers will be impacted by these changes. However, employees who are asked to relocate have one month to make the decision. The company will provide support for those who need to move or, if relocation isn’t possible, offer severance packages.
Part of a larger relocation plan
This move is part of a larger plan Walmart announced in May. Back then, the company asked employees in Dallas, Atlanta, and Toronto to move to its main offices. It also brought back workers who had been allowed to work remotely. Walmart started requiring office returns in February 2022. The company believes that in-person work promotes better collaboration and innovation.
Expanding physical presence
The company is also ramping up its physical presence. In addition to the Bentonville campus, Walmart is expanding office space in Sunnyvale and Bellevue, Washington. There are also expansions planned for Hoboken and a fashion office in New York City. The new Bentonville campus, spanning 350 acres, officially opened last month.
Automation changing the job landscape
But it’s not just about the office locations. Walmart is automating its operations. By 2026, the company plans to have 65 percent of its stores automated. It also expects to process 55 percent of packages through automated systems by January 2026. This will reduce costs and improve efficiency.
Higher pay and new roles in the future
Automation is changing the job landscape. Walmart says fewer physical labor jobs will be needed, but those that remain will have higher pay. This move will also create new roles as the company increases productivity.
Meanwhile, the company continues to raise salaries for its top performers. Last month, Walmart announced a significant pay hike for its regional managers. They can now earn up to $620,000, a major increase from the previous year’s salary range of $320,000 to $570,000. Walmart is also raising the minimum base pay for these managers to $160,000, up $32,000 from two years ago. The company is also boosting stock grants for these managers, from $75,000 to $100,000 annually. Additionally, their potential bonuses will be 100 percent of base pay, up from 90 percent in 2023.
Walmart’s new strategy: automation and efficiency
Walmart’s restructuring is clear. The company is streamlining operations and putting more focus on automation. As it makes these changes, workers who adapt will benefit. Others may need to find new opportunities, but Walmart promises to support those affected by the transition.
