WalMart Is Firing 1,000 Corporate Workers | Zero Hedge
Description: A day after promising to give its store workers raises and bonuses, Wal-Mart is preparing to hand out about 1000 pink slips at its corporate headquarters.

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# WalMart Is Firing 1,000 Corporate Workers

One day after WalMart surprised the nation when on the same day it publicly announced it is raising its starting hourly wage to $11/hour, expanding employee benefits and offering worker bonuses of up to $1000 while at the same time it quietly closed shuttered 63 Sam's Club stores, the WSJ reports that WalMart is preparing to hand out a thousand pink slips at its headquarters. This in addition to the thousands of part-time jobs that will be affected by the mass Sam's Club closure.

The giant retailer, which employs more than 1.5 million people in the U.S., plans to cut more than 1,000 corporate jobs, according to the WSJ.

> The job cuts are expected to be broad based, focused on workers primarily at the company’s headquarters, the people said. The cuts are expected to be completed by the end of the company’s fiscal year on Jan. 31, they added.

> “We’ve been looking at our structure for some time as we explore ways to operate more effectively,” a Wal-Mart spokesman said, without confirming that job cuts are planned this month.

As we reported yesterday, according to Gordon Haskett analyst Chuck Grom, prior to today's layoffs, Wal-Mart's wage investment is just 15% of the tax gain. Grom said that "Wal-Mart may see tax rate of ~23% in FY19 (year ended Jan. 2019) vs current 32%, which would provide $2b windfall". As such the "labor investment of ~$300m represents just 15% of total; assumes a similar amount will go toward investments in price."

Well, make that under $300m after today's layoffs.

Meanwhile, for those wondering what the company will use the rest of the money on: why higher dividend payments and accelerated buybacks of course according to Grom.

Oh, and free advertising: "with WMT being first retailer "out of the gate," it should get some “free media." Although a few more mass layoff announcements, and the free publicity may not be so sterling.

Tags
Business Finance
Labor
Supermarkets & Convenience Stores

## Comments

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Bes Jan 12, 2018 7:15 PM Permalink

#maga!

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D503 Bes Jan 12, 2018 7:16 PM Permalink

Automation took their yobs.

In reply to #maga! by Bes

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Obsidian Samctum D503 Jan 12, 2018 7:17 PM Permalink

Corporate jobs.

In reply to Automation took their yobs. by D503

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MANvsMACHINE Obsidian Samctum Jan 12, 2018 7:23 PM Permalink

Winning never gets old.

In reply to Corporate jobs. by Obsidian Samctum

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directaction MANvsMACHINE Jan 12, 2018 7:27 PM Permalink

A thousand useless suck-up corporate office twerps.

Who cares?

In reply to Winning never gets old. by MANvsMACHINE

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The Alarmist directaction Jan 12, 2018 7:35 PM Permalink

Well, did anyone expect them to actually increase their SG&A?

In reply to A thousand useless suck-up… by directaction

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stizazz The Alarmist Jan 12, 2018 10:56 PM Permalink

Walmart firing employees and executives, and closing stores can only mean one thing. The American CURSE is marching on. http://wp.me/p4OZ4v-3z

In reply to Well, did anyone expect them… by The Alarmist

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Kidbuck directaction Jan 13, 2018 12:07 AM Permalink

Since Sam Walton died Walmart has gone to shit. I find half a dozen empty places on shelves every time I shop there. Usually it is a name brand product missing and right next to the empty space is a store brand product. Most of the Walmart brands suck, frozen vegtables, canned cranberry sauce, even their generic OTC drugs are inferior, for example.

They once had the world's best computerized inventory system so there should be no excuse for ever running out of stuff unless it's deliberate or sheer incompetence.

In reply to A thousand useless suck-up… by directaction

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nmewn Obsidian Samctum Jan 12, 2018 7:24 PM Permalink

Somebody looked around and said: "Just wtf do we pay you people to do all day?"

In reply to Corporate jobs. by Obsidian Samctum

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curbjob nmewn Jan 12, 2018 7:32 PM Permalink

Those laid off will continue to use their EBT cards at Wal-Mart, so it's win win.

In reply to Somebody looked around and… by nmewn

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nmewn curbjob Jan 12, 2018 7:39 PM Permalink

For .gov and banks (who get their "taste" on every swipe) if just looked at in a static universe, dynamic forecasting would look at it differently.

In reply to Those laid off will continue… by curbjob

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Angus McHugepenis nmewn Jan 12, 2018 8:48 PM Permalink

There is a shitload of truth in your analogy. Having been the dumb fuck that had to oversee many people for many years, I actually worked to fire myself and explain why to clueless biz owners. I would estimate that 20% of any business staff could be fired immediately with minimal harm to daily operations.

In reply to Somebody looked around and… by nmewn

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Dubaibanker Obsidian Samctum Jan 12, 2018 11:00 PM Permalink

And IBM is firing 10,000

https://www.channele2e.com/news/ibm-layoffs-2018-10000-global-technolog…

And Wal Mart fired 10,000 too, in Sam's Club by shutting 63 stores without warning.

63 Sam's Club stores are closing their doors

In reply to Corporate jobs. by Obsidian Samctum

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Wahooo D503 Jan 12, 2018 7:24 PM Permalink

That and Bezos

In reply to Automation took their yobs. by D503

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MozartIII Wahooo Jan 12, 2018 7:37 PM Permalink

I would love to have a comment beyond this! However there are so many fuck ups in the story that I'M lacking in speech!

In reply to That and Bezos by Wahooo

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Ralph Spoilsport D503 Jan 12, 2018 9:13 PM Permalink

Costco kicked their ass.

In reply to Automation took their yobs. by D503

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TheObsoleteMan D503 Jan 12, 2018 10:55 PM Permalink

No, being shit at their jobs cost them their paychecks. Not quite two years ago, I bought my daughter a set of four new tires from Sam's Club. Even though I knew their policy, I asked the Tire & Lube manager if anything had changed. He said no, if there ever was a problem with the tires, ANY Sam's Club ANYWHERE in the country would fix or replace them. Less than a year later, two of the tires are almost bald. She had receipts proving she had the tires rotated. The Sam's Club nearest her {not the same store where I originally bought the tires} refused to do anything. The guy at the tire & lube station was going to, it was the store manager who over-rided him, and said we had to go back to the store where they were originally purchased {forty plus miles round trip}. When we arrived at that store, the manager apologized profusely, and even went so far as to say: "We have nothing but problems with that guy, but the regional manager is afraid to replace him. He didn't want those replacement tires coming out of his store budget, as it would mean a smaller bonus for him at the end of the year". Why would they be afraid to fire him? I leave it up to your imagination to figure out why this would be the case. Now I read where that store is closing in a couple of weeks, and that store manager will be out of a job. But not for long. His "type" is very much in demand among corporations right now. It matters not that he is shit at his job, all that matters is that the corporation gets to fill their EEO/Affirmative Action quota for a store manager. The SOB will probably be managing the local Costco the next time I am in there.

In reply to Automation took their yobs. by D503

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Don Sunset Bes Jan 12, 2018 7:17 PM Permalink

Orange Joolius is winning again!

In reply to #maga! by Bes

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curbjob Bes Jan 12, 2018 7:18 PM Permalink

All this trickle down winning. I hear Polaroid cameras are back.

"Meantime, Walmart is also shaking up its management workforce, according to a report by Bloomberg. The report said the retailer is planning to remove about 3,500 store co-managers and adding 1,700 assistant store managers. The latter is a slightly lower-paid role"

https://www.bloomberg.com/news/articles/2018-01-12/wal-mart-said-to-res…

In reply to #maga! by Bes

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nmewn Bes Jan 12, 2018 7:19 PM Permalink

lol...hell has frozen over, Bes is upset that CORPORATE workers are being terminated.

"...the WSJ reports that WalMart is preparing to hand out a thousand pink slips at its headquarters."

In reply to #maga! by Bes

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Peacefulwarrior nmewn Jan 12, 2018 7:23 PM Permalink

"Nearly all men can stand adversity but if you want to test a man's character give him power" Abe Lincoln

In reply to lol...hell has frozen over,… by nmewn

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nmewn Peacefulwarrior Jan 12, 2018 7:30 PM Permalink

Well, I'm unsure if the attribution to Lincoln is correct but its a witty quote ;-)

In reply to "Nearly all men can stand… by Peacefulwarrior

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Pure Evil nmewn Jan 12, 2018 8:14 PM Permalink

It should actually be how a person wields power with Lincoln being a prime example.

We all have the power to commit evil acts but most of us don't rise above squashing a roach or two.

In reply to Well, I'm unsure of the… by nmewn

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GlobalMapper Peacefulwarrior Jan 12, 2018 7:45 PM Permalink

Yep, and ole Abe failed miserably. He was a tyrant's tyrant.

In reply to "Nearly all men can stand… by Peacefulwarrior

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nmewn GlobalMapper Jan 12, 2018 7:48 PM Permalink

I just gotta say, I'm a big fan of searing irony...lol.

Plus one.

In reply to Yep, and ole Abe failed… by GlobalMapper

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ffed Peacefulwarrior Jan 12, 2018 10:31 PM Permalink

so true

In reply to "Nearly all men can stand… by Peacefulwarrior

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Wannabe_Oracle Bes Jan 12, 2018 8:35 PM Permalink

Best picture story nominee.. ./

In reply to #maga! by Bes

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Obsidian Samctum Jan 12, 2018 7:16 PM Permalink

MAGA!!! At least they got a 1000 bonus. Im sure they can make that last until they find another job.

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my new username Jan 12, 2018 7:21 PM Permalink

Walmart - every store is a malignant tumor.

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Herodotus Jan 12, 2018 7:26 PM Permalink

It's all about give and take.

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Elmo Blatch Jan 12, 2018 7:27 PM Permalink

I went to the local Wally to buy printer ink today. The word is out. All of the floor help were trying to be busy little beavers. Usually you never see a worker near the floor.

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Able Ape Elmo Blatch Jan 12, 2018 7:32 PM Permalink

Yeah, firing someone get the juices going in the remaining workers - at least for a couple of days...

In reply to I went to the local Wally to… by Elmo Blatch

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Catullus Jan 12, 2018 7:29 PM Permalink

A huge hit to the Bentonville economy

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itstippy Jan 12, 2018 7:29 PM Permalink

"The job cuts are expected to be broad based, focused on workers primarily at the company’s headquarters, the people said. The cuts are expected to be completed by the end of the company’s fiscal year on Jan. 31, they added."

This is amazing - January 31 is less than three weeks away! Wal-Mart has 1000 people in its corporate office that they needed up to now, but three weeks from now they won't need any more? What the Hell have these corporate guys been doing?

Wal-Mart has a reputation for running a tight and efficient organization. Were all these guys running the Sam's Club stores that are closing?

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nmewn itstippy Jan 12, 2018 7:35 PM Permalink

That was my first thought, thats a lot of real estate people who have to compile spreadsheets on the compliance & regulatory side of the business.

In reply to "The job cuts are expected… by itstippy

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itstippy itstippy Jan 12, 2018 7:51 PM Permalink

Perhaps WMT hired a bunch of experts a year ago to orchestrate the Sam's Club thinning, and now that project is nearing completion. It takes considerable corporate expertise to shut down hundreds of locations the size of Sam's Club outlets in an orderly fashion. As you say, spreadsheet wonks and tax specialists.

1,000 corporate heads chopped at one time is pretty remarkable.

In reply to "The job cuts are expected… by itstippy

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nmewn itstippy Jan 12, 2018 8:00 PM Permalink

What everyone needs to understand is "the corporate structure"...there is so much fat at the top of every corporation they are the same as the denizens of the Deep State.

I can guarantee you outside of personal relationships with the locals, the locals don't care how many heads are chopped at the corporate level.

All they do (in my experience) is produce unfathomable, unworkable, "solutions" to non-existent problems that by & large slow productivity down just so they (at the corporate level) are doing "something".

In reply to Perhaps WMT hired a bunch of… by itstippy

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itstippy nmewn Jan 12, 2018 8:11 PM Permalink

A friend of mine has worked at the local Wal-Mart for many years. She's seen store managers come and go, some good and some bad. She says that Corporate policy moves store managers around every few years so they don't get too "comfortable" in the local community and stay focussed on serving Wal-Mart Corporation, not the local Little Leauge.

I have no insight into the culture at Wal-Mart Corporate and how ruthless it is or is not, but axing headcount by 1,000 in one chop is going to rattle some careers for sure.

In reply to What everyone needs to… by nmewn

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Quick itstippy Jan 12, 2018 8:18 PM Permalink

Walmart is getting rid of .0006667% of their work force with these corporate firings....

Oh well.

In reply to "The job cuts are expected… by itstippy

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Mr Hankey Quick Jan 12, 2018 8:43 PM Permalink

Lets see if I remember....is that 6667 10 millionths of 1% ?So their workforce,just at corporate is....well over 90 billion ppl?

In reply to Walmart is getting rid of … by Quick

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TRM itstippy Jan 12, 2018 10:55 PM Permalink

Christmas rush is over. Fire them. Hire cheap replacements next fall. Until then everyone left will be scared and working a lot better. It's called motivation. Wash, rinse, repeat.

In reply to "The job cuts are expected… by itstippy

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Able Ape Jan 12, 2018 7:30 PM Permalink

Phoney Baloney jobs - down the tubes....Oops...

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NoPension Jan 12, 2018 7:30 PM Permalink

No mercy when they moved in and wiped out multi generation mom and pops.

Now Bezos is sucking all the air out of the room.

In due time...he gets his. I might be dead.

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besnook Jan 12, 2018 7:30 PM Permalink

gee, what if the retailers find out that if they pay more they sell more and even have some price elasticity, will they raise wages even more? and will that encourage or force other low wage employers to do the same?

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Billy the Poet besnook Jan 12, 2018 8:25 PM Permalink

You could start paying more too. Just double the price of every bill handed to you and soon all those folks whom you overpaid will be buying more things from you. Can't fail.

In reply to gee, what if the retailers… by besnook

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MuffDiver69 Jan 12, 2018 7:30 PM Permalink

It’s a bloated company. The Sam’s Club near me has been dead for a decade. The company will end up stronger and is paying more in salary to people that need little skill. Perhaps these writers could explain how they would justify paying more then what they reported. This is a bizarre arguement the dimwits who wrote this are making. Basically every company saw its earnings rise and if they are viable, they are stronger...Just come out and say you are going to criticize this President and say he should have raised taxes- that would be more honest...schmucks

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Chupacabra-322 Jan 12, 2018 7:33 PM Permalink

Not only do they slash prices. They slash jobs as well. Wonder if they’ll spend their unemployment checks there?

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mendigo Jan 12, 2018 7:45 PM Permalink

Well maybe its about numbers.

Cut so many stores there should be prop reduction in overhead i imagine.

Big companies are managed by the numbers. They dont remember why t&ey went into business.

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fbazzrea Jan 12, 2018 7:47 PM Permalink

i suspect WMT has finally recognized their original flyover-country demographic has been downgraded to dollar stores and their new demographic are a growing non-metro would-be WholeFoods customer willing/able to pay for what they want.

don't remember the author but several years ago i read that when America becomes more third-world, WMT will find its old customers no longer able to afford to shop there. reminds me of southeast Asia where street food vendors and open markets are the fare of everyday people while bigbox stores, walk-in restaurants and Western-styled "modern" grocers are mostly frequented by tourists and upper middleclass.

who'da ever thunk WalMart to be "high class?"

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Mazzy fbazzrea Jan 12, 2018 7:54 PM Permalink

Not at all. I don't set foot inside of Wal-Mart. Not ever. It is peopled by dregs (and that includes any Z-hedgers reading this). Stay away!!! Don't contribute to feeding the beast.

In reply to i suspect WMT has finally… by fbazzrea

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