Wal-Mart Stores is making another round of job cuts as part of Chief Executive Officer Doug McMillon’s efforts to streamline operations, according to a person familiar with the situation.
The move will eliminate hundreds of positions this month, said the person, who asked not to be identified because the plan isn’t public. The Wall Street Journal previously reported on the layoffs, saying they would fall particularly hard on the human-resources department, which some executives feel should be outsourced.
Wal-Mart has been looking for ways to slim down its operations at a time of increasing e-commerce spending and rising wages for employees. In late 2015, Wal-Mart eliminated hundreds of headquarters positions, followed by a relocation of 7,000 back-office accounting positions that was announced in September. Wal-Mart employs about 2.3 million people worldwide.
“We need to manage expenses even better, which includes changing how we do work inside the company,” McMillon told investors in October. “We have a lot of conversations these days about priorities.”
The Bentonville, Arkansas-based company is coming off a third quarter marked by disappointing sales growth, though e-commerce orders did show signs of picking up. Wal-Mart reports its fiscal fourth-quarter results in February.
The stock was little changed in New York on Tuesday, trading at $68.56. It rose 13 percent last year.
(c) 2017, Bloomberg ยท Molly Smith
