Wal-Mart to cut 300 corporate jobs
by February 3, 2010 2:01 pm 73 views
Wal-Mart officials said Wednesday (Feb. 3) they will cut 300 jobs at the headquarters in Bentonville.
The news follows a Jan. 29 announcement from the company of broad structural changes that included the creation of a Global Sourcing group, more definitive focus on e-commerce and the closure of 10 U.S. Sam’s Club stores. The club closures resulted in up to 1,500 jobs cut throughout the company. Wal-Mart Stores Inc. employs an estimated 2 million worldwide.
The world’s largest retailer employs an estimated 11,000-12,000 corporate employees in Bentonville, and cut up to 800 headquarter jobs in February 2009.
“Today, we’re announcing organizational changes at our Home Office. In line with our strategy, I’ve asked each of my direct reports to look across their span of control for opportunities to eliminate duplication, reduce costs, and shift work closer to the operating units, and therefore, closer to the customer. As a result, we will eliminate approximately 300 positions in Northwest Arkansas, primarily in the corporate support areas. This was a difficult decision, but I believe that if we ask our operations to be leaner and more customer-focused, we must ask the same of our support teams at the Home Office,” Wal-Mart President and CEO Mike Duke noted in a memo sent to the media.
While job cuts are never welcome, the loss of 300 corporate jobs — about 1,100 within the past 13 months — in even the relatively stable Northwest Arkansas economy will be tough to absorb. The federal Bureau of Labor Statistics reported Feb. 2 that the NWA metro area had a 5.7% unemployment rate in December. The rate is considerably lower than the Arkansas rate of 7.7%, but it’s a jump from the NWA metro jobless rate of 4.6% in December 2008.
Wal-Mart shares (NYSE: WMT) gained following the news, up more than 1.6% in late afternoon trading. For the past 52 weeks, the share price has ranged from a $55.20 high to a $46.29 low.
Following is Duke’s full memo.
Our purpose of saving people money so they can live better has never been more relevant. When so much is changing all around them, people count on Walmart to provide more value and quality in a way that only we can.
A core part of our culture is to continually look for ways to be more efficient — to operate for less so we can sell for less. Last fall, we laid out three strategic priorities to deliver even more value for both customers and shareholders: growth, leverage and returns. As you know, over the last month we’ve made a number of important changes at Sam’s Club, Walmart US and in Global Sourcing to ensure that this strategy is driving our structure. Each move has been designed to help us become more global, take advantage of our scale, and move our business even closer to the customer.
Today, we’re announcing organizational changes at our Home Office. In line with our strategy, I’ve asked each of my direct reports to look across their span of control for opportunities to eliminate duplication, reduce costs, and shift work closer to the operating units, and therefore, closer to the customer. As a result, we will eliminate approximately 300 positions in Northwest Arkansas, primarily in the corporate support areas. This was a difficult decision, but I believe that if we ask our operations to be leaner and more customer-focused, we must ask the same of our support teams at the Home Office.
Taking care of associates affected by these changes remains one of our most important priorities. Each position represents an individual who has been a part of our Walmart team. I also know that this will be a difficult time for the team members who have worked side-by-side with these associates. Everyone who will be leaving the company will be treated with care and respect and we will do everything we can to make the transition as smooth as possible.
Sam Walton had the foresight to combine a culture of values that remains constant with a business model that is able to respond quickly to a changing world. Our challenge today is to lead change while upholding the culture that made us such a great company. And as we move forward with balance and integrity, change will make us stronger.
With this last major strategic piece in place, we are beginning our new fiscal year with every part of our business focused on being even more responsive to our customers. Thank you for everything you do to keep our customer’s trust — and our company — strong for the future.