It has been reported by the Wall Street Journal that Wal-Mart Stores Inc. has a plan to slash hundreds of jobs at their corporate headquarters in Arkansas as well as their regional personnel which normally gives support to its retail stores. All this is expected to happen toward the end of the month.
The majority of the job terminations will happen in the human resources department of Wal-Mart. Reports indicate that senior executives of Wal-Mart believe the human resources department is too large and not efficient enough. So, their idea is to reportedly have outside consultants help do the work that normally would have been done by their HR employees. This will save the company money because they won’t have to hire full-time employees into the company and pay them benefits. The outside consultants, on the other hand, would be paid on a contractual basis. Other departments may also see layoffs in the coming months too.
In September, Wal-Mart announced that they were going to slash as many as 7,000 office jobs at their American-based stores. These are jobs which mostly pertain to invoicing and accounting positions. With all the money that Wal-Mart will save from these job cuts, they plan to invest over $2.5 billion into educational training programs for their employees. Not only that, the money will also go toward increasing the minimum hourly wage of their retail store workers to $10 per hour. A minimum wage increase is something that retail Wal-Mart workers have been demanding for a while now.
Aside from all that, the rest of the money will be invested in improving their retail stores and increasing their online sales. During their third quarter, the company saw an increase in their number of online sales while in-store sales saw a drop in their sales. E-commerce may become huge for the company in the future.