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Walmart cuts hundreds of jobs at fulfillment centers as recession fears grow

By Nithya Bose in US business news, posted March 24, 2023

Walmart has laid off off hundreds of workers at its five e-commerce fulfillment centers as retailers prepare for a challenging year ahead.

A spokesperson said those impacted were directed to seek jobs at its other sites within 90 days.

Nearly 200 New Jersey workers and hundreds of others in Texas, California, Florida, and Pennsylvania lost jobs due to a drop or removal in evening and weekend shifts.

The layoffs are a sign of signal further difficulties in the US economy, which many experts expect could head into a recession this year.

Recession fears have already caused stores to announce 17,456 job losses in 2023, up from 761 in the same period last year.

Amazon, Neiman Marcus, and Lidl are among the retailers laying off employees, primarily in corporate positions.

Walmart said: "We recently adjusted staffing levels to better prepare for the future needs of customers.”

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The spokesperson said affected employees would be compensated for 90 days while looking for work at other locations.

It includes facilities in Joliet, Illinois, and Lancaster, Texas, where the corporation has established new high-tech e-commerce distribution centers.

Workers slashed at the five fulfillment centers will be eligible for jobs at Walmart's 5,000 US stores.

The firm is increasingly leveraging these stores as a platform to ship items directly to customers.

The spokesperson didn’t call them mass layoffs and said the warehouses continued functioning normally.

Source: Reuters

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