Walmart Inc (NYSE:WMT) is consolidating its business by merging its online and store businesses in the U.S, a move that will lead to loss of several corporate jobs. The e-commerce giant said it is getting rid of some of its office jobs. The country’s largest retailer did not review the number of jobs that will be cut off.
The layoff was first announced in a report by Bloomberg, citing people familiar with the matter. According to the report, the retailer has cut hundreds of jobs across logistics, planning, and real estate.
Retailers are rethinking their business models to mitigate the impact of the COVID-19. A retailer’s success will mainly be determined by its ability to survive in the new normal by developing flexible and conducive strategies. Walmart’s move to cut jobs is part of its cost-cutting strategy.
The company’s e-commerce has been going through several changes since the acquisition of Jet.com. Walmart is consolidating its online and in-stores businesses into one business organization as the sales from the two units have kept entangling over the years. The merger is also meant to simplify the buying experience and improve communication with its vendors.
“We are continuing on our journey to create an omnichannel organization within our Walmart U.S. business and we’re making some additional changes this week,” Walmart spokeswoman Jami Lamontagne.
Walmart is working on improving fortunes from its online business and improve profitability. In recent months, the company has made several changes in its management and operations. In February, Walmart merged its in-store and online buyer teams to remove conflicts in pricing of its products. The company also announced a partnership deal with ThredUp, second-hand apparel, and accessories site. In addition, Walmart has partnered with Shopify to add more product offerings on its website.
Targeting online sales
In the wake of the COVID-19 pandemic, many retailers are working to cash in on the growing number of people shopping online. The pandemic has caused lockdowns across the world as countries rush to contain the virus. Walmart reported 74% jump in its e-commerce sales in Q1 2020.