Walmart is restructuring its operations and cutting about 1,500 jobs as part of its new plan, Reuters reports.
An internal memo Walmart shared with LiveNow from FOX says the restructuring is an effort to simplify operations. The job cuts are mostly corporate and on Walmart’s technology team, but the note doesn’t specify how many jobs will be cut. It does say that they are “eliminating roles as well as opening some new roles.”
The teams impacted include global technology operations, e-commerce in U.S. stores and Walmart Connect, the company’s advertising business.
“To accelerate our progress delivering the experiences that will define the future of retail, we must sharpen our focus,” the memo said.
Last week, Walmart CEO Doug McMillon said the retail giant will raise prices to counter higher costs from President Donald Trump’s tariffs, despite strong quarterly sales.
“We will do our best to keep our prices as low as possible,” McMillon told industry analysts. “But given the magnitude of the tariffs, even at the reduced levels announced this week, we aren’t able to absorb all the pressure given the reality of narrow retail margins.”
Walmart is expected to weather tariffs better than some other retailers: Two-thirds of Walmart’s merchandise is sourced in the U.S., with groceries driving much of that. Groceries account for roughly 60% of Walmart’s U.S. business. Still, Walmart isn’t immune.
Walmart raising prices due to tariff costs: What we know
Walmart imports general merchandise from all over the world from dozens of countries. But China, in particular, accounts for about 60% of Walmart’s imports on items like electronics and toys.
Walmart is the largest private employer in the U.S. and is also the nation’s biggest importer.
Trump lashed out at Walmart after its CEO said they would raise prices, saying Walmart should eat the additional costs created by his tariffs.
“Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain,” Trump posted on social media Saturday. “Walmart made BILLIONS OF DOLLARS last year, far more than expected. Between Walmart and China they should, as is said, “EAT THE TARIFFS,” and not charge valued customers ANYTHING. I’ll be watching, and so will your customers!!!”
The Trump administration has imposed 30% tariffs on China for a 90-day period, down from 145% when tariffs were first announced. Tariffs on Mexico and Canada go as high as 25%, and most countries have a universal baseline tariff of 10% while Trump tries to get new trade deals in coming weeks. There are also various import taxes in place on autos, steel and aluminum, with plans to add tariffs on pharmaceuticals.
Tariffs are a tax on the American consumer. *YOU* pay the tariff, not the seller. Shoulda paid attention while you were in skool.