Walmart is making significant job cuts, slashing 1,500 corporate roles as part of a sweeping restructuring strategy driven by looming tariffs and cost pressures.
The layoffs, which affect workers across departments including Walmart Global Tech, U.S. e-commerce, and its advertising division Walmart Connect, are part of a broader restructuring effort aimed at “removing layers and complexity,” according to an internal memo reviewed by The Wall Street Journal.
This announcement arrives just days after Walmart hinted at price hikes due to looming tariffs on Chinese imports. With a potential 25% levy set to hit various consumer goods, Walmart is reportedly reviewing pricing strategy to protect profit margins – a move that could pass costs to shoppers.
A Strategic Reset
In a statement, Walmart executives said the restructuring will help “speed up decision-making and enhance innovation.” The retail giant also plans to open new roles in areas more aligned with current growth targets, particularly around AI and automation.
Still, the impact on existing teams is significant. The tech division alone has seen a wave of downsizing over the past year, and sources inside the company suggest that the latest round of cuts reflects a shift toward outsourcing and AI-driven efficiencies.
Tariff Tensions Mount
President Donald Trump, speaking at a campaign stop earlier this week, criticized Walmart directly, urging the company to “eat the tariffs” instead of passing higher costs onto American families.
However, Walmart leadership has made it clear: cost increases are likely unavoidable. “We’ll manage margins where we can,” CFO John David Rainey said in last week’s earnings call, “but inflation and tariffs are real headwinds.”
Strong Sales, Shaky Outlook
Despite these challenges, Walmart posted solid Q1 sales, buoyed by grocery and pharmacy categories. But executives warned that macroeconomic pressure – from tariffs to interest rates – could weigh on discretionary spending in the months ahead.
Walmart currently employs around 1.6 million people in the U.S. The corporate staff affected by this decision make up a small percentage, but the move still reflects a trend across retail toward leaner, tech-optimized structures.
A Broader Trend
Walmart is far from alone. In recent weeks, companies like Amazon and Wayfair have also announced cuts to corporate teams in favor of more automated systems. Analysts say the industry is preparing for a retail landscape that demands both agility and cost control.
For now, Walmart says impacted employees will be offered severance and some internal transfer options – but not all will be retained.
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