World's top retailer Wal-Mart to slash jobs at headquarters

11 February 2009

World's No.1 retailer Wal-Mart is planning to eliminate as many as 800 positions from its corporate office in Northwest Arkansas over the next few weeks as it attempts to adapt to the economy by cutting costs and improving efficiency, the company said yesterday.

Spokesman David Tovar said the move would mainly affect merchandising, real estate, marketing and support staff at Wal-Mart headquarters in Bentonville, Arkansas. Some positions will not be filled, while others will be relocated to offices across the country, he said.

Tovar said the cuts were necessary as Wal-Mart realigns its business. As it reduces the number of store openings in light of the economic downturn, for example, fewer people are needed in its real estate business. However, he said the company expects ''to add thousands of jobs'' at Wal-Mart stores and Sam's Clubs this year - a figure that includes hires at new stores. Last year, Wal-Mart opened 166 new stores, but this year that number will be between 125 and 140.

''It's an ongoing process for us to look at our staffing needs and align them with our business plan,'' Tovar said. ''Last year we moved some of the apparel jobs'' to New York. He said some of those positions might be transferred to the team that handles store remodeling.  He said affected employees would receive pay for 60 days with benefits in addition to severance pay. Wal-Mart is also allowing them to apply for positions with the retailer's suppliers immediately, he said.

The cuts represent roughly 6 per cent of the 14,000 people who work at the headquarters of the world's largest retailer. Wal-Mart employs about 1.4 million people in the US and a total of 2 million employees globally. It is the largest private employer in the US.

"We do not make these decisions lightly," Wal-Mart CEO Mike Duke wrote in a memo to employees yesterday. He added, "We must also challenge costs in every corner of the company in order to keep our business strong today and well into the future."