Wal-Mart Stores Inc (NYSE:WMT) has been making fundamental changes to its e-commerce division. However, with great change, comes sacrifice. This sacrifice is in the form of the layoffs, which the company announced would be initiated into their E-commerce division.
The reason behind these layoffs, have yet to be fully determined. However, one can assume that they are due to the recent purchase that the company made of ShoeBuy, and the new proposed leadership team for the retail giant’s e-commerce division.
More details about the plans for Walmart E-commerce division layoffs
CEO of Walmart, Marc Lore announced that the company will be going through a phase, which will incorporate of 200 layoffs in the company’s e-commerce division. This was first announced on Tuesday by Lore.
In the same statement, where Lore explained that the company would be initiating layoffs, he also stated, “While some roles are going away today, we’ll be investing in our business and adding new skill sets during the year.”
However, the 200 positions that Lore announced, are just a small scale on the bigger picture. The company-wide reorganization process began this month. According to people, who are familiar with the matter, there are a planned 1,000 layoffs, which will be incurred through all of Walmart’s e-commerce divisions.
The plans Walmart has for its e-commerce division
In the layoffs, it was announced that two of the executives in the e-commerce division will be leaving. These are namely Michael Bender, as well as Neil Ashe. However, in the announcement of them leaving, it was also revealed that Jet.com, as well as various other Walmart executives, will be reorganized to be responsible for different roles within the organization.
Lore also announced that the company may be performing layoffs now, in order to better organize the retail giant’s hierarchy. Once the dust settles, the company will be investigating various options, to which it may explore new skill sets, which can be applied to its workforce.
Walmart stock closed on Thursday at $66.73, after witnessing a decline of $0.16 or 0.24%