Walmart has started laying off corporate workers, a week after it slashed its profit outlook for the rest of the year after consumers pulled back on discretionary spending due to inflation.
The big-box retailer described the layoffs as a way to “better position the company for a strong future,” to CNBC.
A spokesperson for the company, Anne Hatfield, declined to say how many workers will be affected and what divisions have experience cuts.
However Hatfield did reveal to CNBC that the company is still hiring in other divisions of its business that are still growing.
These include supply chain, ecommerce, health and wellness and advertising sales.
“Shoppers are changing. Customers are changing,” she said. “We are doing some restructuring to make sure we’re aligned.”
Walmart is the US’ biggest employer, with nearly 1.6 million workers on the books.
Investors were spooked when the company cut its quarterly and full year-profit guidance.