US retailer Walmart is said to be planning to cut 1,500 jobs as part of restructuring efforts intended to simplify operations.
Teams in global technology operations, e-commerce fulfillment in US stores and its advertising business are among those said to be impacted. This was first reported by the Wall Street Journal.
A Walmart spokesperson told the media outlet that the layoffs “reflect a focus on business priorities and our growth strategy, and are not related to tariffs”.
Meanwhile, a memo sent to staff and seen by Reuters said the restructuring was designed to “sharpen our focus” in a bid to “accelerate our progress delivering the experiences that will define the future of retail”.
As such, Walmart was “reshaping some teams in our Global Tech and Walmart US operations where we have identified opportunities to remove layers and complexity, speed up decision-making, and help associates innovate rapidly”.
The news comes on the back of Walmart stating that it was considering increasing its prices in the wake of new import duties in the US, imposed by president Donald Trump.
Trump responded to the comment by saying Walmart should “eat the tariffs”.
Concern over tariffs arose in the company’s Q1 report, in which, despite posting a 2.5 percent rise in revenue, Walmart CEO Doug McMillon said the retailer would need to pass some of the cost burden onto consumers despite hedging strategies and a domestic-heavy sourcing model.
FashionUnited has contacted Walmart with a request to comment.