Walmart announces layoffs amid lower profit forecasts

Walmart confirmed Wednesday that it is laying off corporate workers as part of a restructuring process.

“We are updating our structure and evolving select functions to provide clarity and better position the company for a strong future,” a company spokesperson told FOX Business in a statement. “At the same time, we are investing more in key areas such as e-commerce, technology, health and wellness, supply chain and advertising sales, and creating new roles to support our growing number of services for our clients. , suppliers and the business community”.

walmart store

This file photo shows the entrance to a Walmart in Pittsburgh. (AP Photo/Gene J. Puskar, File/AP Newsroom)

A source familiar with the situation told FOX Business that the number of layoffs is around 200 corporate employees.

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The news comes a little over a week after the company lowered its earnings outlook for the second quarter and full year, as runaway inflation takes its toll on the retail giant.

The company announced that it expects adjusted earnings per share for the second quarter to decline to around 8% or 9%, falling to the 11% to 13% range by fiscal 2023.

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Walmart said in its statement that double-digit food inflation is higher than it was at the end of the last quarter, noting that “this is affecting customers’ ability to spend across general merchandise categories and requires further markdowns for moving through inventory, particularly clothes. .”

FOX Business Breck’ Dumas contributed to this report.

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