Wal-Mart begins firing its employees in the wake of what it announced last week when it cut its quarterly and full-year 2022 earnings guidance due to the negative consequences of inflation:
an inflation that in the US is galloping at the strongest pace of the last 40 years, and which is inducing consumers to spend more on necessities such as food than on other products such as clothing and electronics.
With a statement released to CNBC, the American retail giant defined the layoffs as a way to “better position the company towards a solid future”.
Walmart spokesperson Anne Hatfield did not provide details on how many employees will be affected by the layoffs and which divisions will be affected by the cuts.
Hatfield said Wal-Mart is also still hiring in some divisions that are still growing, such as supply chain, e-commerce, health and wellness and ad sales.
At the end of July, Wal-Mart announced that it expected earnings per share for the second quarter and full year to fall between 8% and 9% and between 11% and 13%, respectively.
He previously stated that he estimates a trend in eps between flat and slight upside for the second quarter and a 1% decline for the full year.
Wal-Mart is the American company that most of all employs US citizens, employing a workforce of nearly 1.6 million in the US. The stock is slightly down in Wall Street afterhours trading.