Walmart is set to lay off around 1,500 employees as part of an effort to “remove layers and complexity” within its corporate structure.
The cuts will primarily affect the retailer’s global technology teams and US corporate offices, including its Arkansas headquarters, sources told The Wall Street Journal and Bloomberg.
In a memo titled “Building for the future,” US CEO John Furner and global technology chief Suresh Kumar explained the move aims to speed up decision-making and enable quicker innovation.
The memo said the technology division will be “slimmed down to simplify its structure” and better align with Walmart’s business priorities.
“Reshaping some teams in our Global Tech and Walmart U.S. organisations where we have identified opportunities to remove layers and complexity, speed up decision-making, and help associates innovate rapidly,” the memo stated.
Walmart also noted it will be creating new roles aligned with its growth strategy, despite the layoffs.
This move follows a broader trend among major US corporations to flatten organisational hierarchies.
Companies such as Amazon, Google, and Intel have recently cut middle-management positions to improve efficiency. Amazon, for example, announced last year plans to increase its worker-to-supervisor ratio by at least 15%.
The announcement comes roughly a week after Walmart revealed it would raise product prices in response to tariffs imposed by the Trump administration.
Walmart sources about a third of its US merchandise from overseas suppliers in countries like China, Vietnam, and Mexico.
While some tariffs have been paused, Walmart’s CFO maintains that the remaining duties remain “too high,” leading to increased costs.
Walmart reported a 2.5% increase in revenue in its most recent quarter compared to the previous year, with sales reaching $165.6 billion.
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