Wal-Mart Denies Reports of Impending Layoffs in Germany

Wal-Mart Stores Inc. on Nov. 2 denied a German trade magazine report that it planned to cut 1,350 jobs of a total 17,400 at its German unit, Wal-Mart GmbH.

Without naming sources, the online edition of LebensmittelZeitung said Wal-Mart GmbH would cut 150 administrative jobs and another 1,200 positions at its 94 German stores.

“The article was not factually correct,” said Maria Rodriguez, Wal-Mart’s international corporate affairs manager. “It’s speculation and not based on fact. We’re always reviewing the performance of our business.”

Rodriguez said in late November Wal-Mart will open its first store built from the ground up in Germany.

Wal-Mart first entered the German market in 1997 with the purchase of the 21-store Wertkauf hypermarket chain. Wal-Mart now has 94 stores in Germany. The discount giant renovated 24 stores in that country last year.

Analysts believe Wal-Mart has been losing about $200 million per year in Germany, the only country where the Bentonville-based company has not gained a firm foothold.