Walmart responds to report of layoffs at fulfillment centers

By Tomi Kilgore

Retailer says it has adjusted staffing levels in select markets and is working with affected employees on career options

That was Walmart Inc. responding to a request for comment on a Reuters report Thursday that Walmart had laid off hundreds of workers at five fulfillment centers in five states. The report also said the workers were asked to find jobs at other locations within 90 days.

"This decision was not made lightly, and we're working closely with affected associates to help them understand what career options may be available at other Walmart locations," Walmart said in its emailed response to MarketWatch.

Walmart's (WMT) stock rose 0.8% to close at $140.65, while the Dow Jones Industrial Average , of which it is a component, advanced 75.13 points, or 0.2%.

The report comes after the discount retail giant in February reported fiscal fourth-quarter U.S. same-store sales that rose 8.3% from a year ago, handily beating the average analyst estimate compiled by FactSet of 4.9% growth as e-commerce sales jumped 17%.

While fourth-quarter profit beat expectations, the guidance Walmart provided for both first-quarter and fiscal 2024 earnings per share were below analyst projections.

"Customer expectations are changing, and we are moving quickly to meet and exceed their needs," Walmart said in Thursday's statement. "As demand grows, we are maximizing our network of stores and fulfillment centers, to deliver items for online customers, when and how they want them."

Last week, Walmart said in its annual report for fiscal 2023, which ended Jan. 31, that it had 2.1 million employees worldwide, including 1.6 million employees in the U.S. That compares with 2.3 million employees at the end of fiscal 2022, with approximately 1.7 million employees in the U.S.

Walmart's stock has lost 2.2% over the past three months, while the Consumer Staples Select Sector SPDR exchange-traded fund (XLP) has declined 4.6% and the Dow has dropped 3.3%.

-Tomi Kilgore

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

03-24-23 0833ET

Copyright (c) 2023 Dow Jones & Company, Inc.