Walmart cuts 200 company jobs as costs and inventory sap profits

Walmart is cutting about 200 company jobs as it deals with rising costs, bloated inventory and weaker demand for general merchandise.

The cuts include merchandising and technology staff, said people familiar with the matter, who asked not to be named as the matter is private. Walmart will also add an undetermined number of jobs in areas including e-commerce, health and wellness, ad sales and supply chain, one of the people said.

“We are updating our structure and evolving certain roles to provide clarity and better position the business for a strong future,” the company said in an email. “At the same time, we are investing more in key areas and creating new roles to support our growing number of services for our customers, suppliers and the business community.

The distribution giant is tightening its belt a week later cutting its full-year profit forecast for the second time in less than three months. American consumers are buying less clothing and durable goods as soaring inflation increases the cost of food and basic items. This prompts Walmart to cut prices for general merchandise even as grocery sales – which are less profitable for the retailer – continue to soar.

Shares fell 0.5% in extended trading. The job cuts were first reported by The Wall Street Journal.

Walmart employs nearly 1.6 million people in the United States, according to its website. The Bentonville, Arkansas-based company is the nation’s largest private sector employer.

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