Hundreds of employees at five US Walmart stores that process e-commerce orders are being let go as the business reduces its employment and asks them to apply for jobs at other Walmart locations within 90 days, according to a spokeswoman quoted by Reuters.
For a variety of reasons, including budget cuts, organizational changes, mergers and acquisitions, changes in corporate strategy, or diminishing earnings, many businesses have let go of their workforces.
Pedricktown, New Jersey, along with Fort Worth, Texas, Chino, California, Bethlehem, Pennsylvania, and Davenport, Florida, all experienced layoffs due to a reduction in the number of nighttime and weekend shifts, according to the spokesman.
For the impacted employees, layoffs can be a difficult experience due to the uncertainty and financial challenges. However, as businesses attempt to stay profitable and competitive in a market that is changing quickly, layoffs are becoming increasingly widespread.
Walmart has made considerable investments in automation
The spokesperson also said that individuals who are laid off will be eligible for 90 days’ pay till they find a new job at other locations including Joliet, Lancaster, Texas, and Illinois where the firm opened up new e-commerce distribution centers.
Employees at Walmart’s 5,000 US stores, which the company has been utilizing as a platform to deliver goods to customers’ doorsteps, will be eligible for positions with the five fulfillment centers’ laid-off workers because they have experience working there. Walmart is the biggest private employer in the US, with around 1.7 million workers.
Working with companies like Knapp over the past few years, Walmart has made considerable investments in automation. During a post-earnings call in February, Walmart CEO Doug McMillon highlighted his optimism about the potential for automation. As part of its more than $15 billion capital expenditure budget this year, Walmart intends to increase investments in automation technologies.
Walmart did not issue a WARN notice for the layoffs at several locations
Walmart did not issue a Worker Adjustment and Retraining Notification (WARN) notice for the layoffs outside of Pedricktown, New Jersey, according to a Reuters study of labor department documents. It is important to remember that US labor law mandates 60 days’ notice for plant closures and mass layoffs from firms with 100 or more employees.
Walmart did not issue a WARN letter for the other sites, according to the spokesperson, because the company is unsure of the number of employees who will ultimately be fired and rehired. The Walmart spokesperson avoided using the phrase “mass layoff” and stated that operations at the warehouses went on as usual.