According to an exclusive Reuters report on Thursday, hundreds of employees at five U.S. Walmart (NYSE: WMT) sites that fulfill e-commerce orders are being ordered to find positions at other corporate locations within 90 days.
A representative stated that around 200 employees in Pedricktown, New Jersey, and hundreds more in Fort Worth, Texas, Chino, California, Davenport, Florida, and Bethlehem, Pennsylvania, were let off because of a decrease or termination of evening and weekend shifts. The warehouses continued to function regularly, according to the spokeswoman, who refused to term them mass layoffs.
“We recently modified staffing numbers to better prepare for future consumer requirements,” Walmart said in a statement, adding that the company will work closely with impacted workers to locate new opportunities.
During the last several years, Walmart has made significant investments in automation, working with businesses like Knapp to reduce the steps required to complete e-commerce orders.
Walmart preparing for full-automation
ON A POST-EARNINGS CALL IN FEBRUARY, Walmart CEO Doug McMillon said he was “particularly enthused about the automation potential we have,” with plans to raise investments in automation technologies as part of the company’s more than $15 billion capital expenditure budget this year.
“You will begin to see major advantages from our investments in areas like supply chain automation and enhanced e-commerce capabilities,” Walmart CFO John Rainey said on the call. “Although macroeconomic headwinds this year may hide some of that achievement, they will not diminish the long-term potential of many of these projects.”
The announcement comes months after the corporation laid off almost 1,500 people at an online order fulfillment facility in Atlanta, Georgia, as part of a modernization strategy to develop warehouses with a more high-tech twist. According to the spokeswoman, the fresh wave of layoffs is unconnected to the company’s modernization efforts.
WMT shares are up 0.93% in midday trade on Thursday.
