Walmart laid off around 200 corporate employees one week after it cut its profit outlook.
The layoffs are a way to “better position the company for a strong future,” the company told CNBC. However, a Walmart spokesperson declined to comment to SeafoodSource on which divisions it is making cuts in, so it is unclear how its seafood merchandising and buying positions will be impacted.
Some Sam’s Club and Walmart seafood executives left ahead of the layoffs. Sam’s Club Fresh and Frozen Seafood Senior Buyer Daniel Underkoffler Jr. left his job in June 2022, according to his LinkedIn profile.
“Shoppers are changing. Customers are changing,” Walmart Spokesperson Anne Hatfield told CNBC. "We are doing some restructuring to make sure we’re aligned.”
On 25 July, Walmart cut its quarterly and full-year profit guidance, saying inflation is causing shoppers to spend more on necessities such as food and less on items like clothing and electronics, according to CNBC.
Walmart now anticipates its adjusted earnings per share for the second quarter to decline around 8 or 9 percent, and for the full year decline between 11 percent and 13 percent, per CNBC.
Previously, the retailer said it expected its earnings per share to be flat to up slightly for the second quarter and to drop by about 1 percent for the full year.
Though Walmart is cutting some positions, it is still hiring in parts of its business that are growing, Hatfield said, including in supply chain, e-commerce, health and wellness, and advertising sales positions.
Amazon also reduced staff by 99,000 people globally at the end of the second quarter, per CNBC. The reduction was primarily due to attrition, Amazon Chief Financial Officer Brian Olsavsky said on a call with reporters.
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