We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Wal-Mart (WMT) Cuts Back-Office Jobs to Improve Efficiency
Read MoreHide Full Article
Wal-Mart Stores Inc.(WMT - Free Report) reportedly stated that it will eliminate about 7,000 back-office jobs, mostly in accounting and invoicing positions at its U.S. stores. The company intends to reduce headcount at all of its approximately 4,600 stores in the country over the next several months. This move is part of the retail giant’s efforts to streamline its stores and make them more efficient. The Wall Street Journal first reported the number of job cuts on Thursday.
This move is an extension of a program announced in June for headcount reduction on the West Coast. In June, Wal-Mart, the country's largest private-sector employer, said it would cut back-office jobs at each of its 500 stores in mostly West of Colorado. This would affect as many as 1500 workers, in an attempt to see if those functions could be replaced by workers in the home office and machines.
Per reports, Wal-Mart wants to get workers out of the backrooms on to the sales floor to help customers, as it has been constantly striving to improve customer service. The customer-facing jobs would include positions like working in the online pickup department or as pharmacy technicians. For back-office functions, Wal-Mart plans to automate the work, rather than relying on dedicated accountants and other staff. The changes will be effective this year and extend into 2017.
Wal-Mart stated that the job cut was not a downsizing move, and the affected and displaced workers will find new jobs that involve direct contact with shoppers.
Bentonville, AR-based Wal-Mart has been making efforts to understand the evolving needs of its customers to regain their confidence, and thus, boost sales in the face of increased competition from traditional and online players. Additionally, Wal-Mart is making huge investments in e-commerce initiatives to compete with the biggest online retailer Amazon.com (AMZN - Free Report) and to improve customer service.
The company is also paying its workers more and training them to improve its stores’ performance. Wal-Mart being the largest private employer in the U.S. with 2.2 million employees, raised wages of more than 1.2 million employees of Walmart U.S. and Sam’s Club in February, as was announced in Jan 2016.
The move marks the second phase of the company’s two-year $2.7 billion investment in workers. Wal-Mart spent $1 billion on raises and training last year, per the plan announced in Feb 2015 to hike wages of approximately 500,000 full-time and part-time associates at Wal-Mart U.S. stores and Sam's Clubs.
Though the wage hike will raise the expense burden on the retailer and reduce its earnings over the near term, we believe this will keep workers contented and also help improve Wal-Mart’s customer service. Also, it will ultimately encourage shoppers to spend more.
Wal-Mart currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Other well positioned retailers include Tilly's, Inc. (TLYS - Free Report) and The Children's Place, Inc. (PLCE - Free Report) . Both sport a Zacks Rank #1 (Strong Buy).
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Wal-Mart (WMT) Cuts Back-Office Jobs to Improve Efficiency
Wal-Mart Stores Inc.(WMT - Free Report) reportedly stated that it will eliminate about 7,000 back-office jobs, mostly in accounting and invoicing positions at its U.S. stores. The company intends to reduce headcount at all of its approximately 4,600 stores in the country over the next several months. This move is part of the retail giant’s efforts to streamline its stores and make them more efficient. The Wall Street Journal first reported the number of job cuts on Thursday.
This move is an extension of a program announced in June for headcount reduction on the West Coast. In June, Wal-Mart, the country's largest private-sector employer, said it would cut back-office jobs at each of its 500 stores in mostly West of Colorado. This would affect as many as 1500 workers, in an attempt to see if those functions could be replaced by workers in the home office and machines.
Per reports, Wal-Mart wants to get workers out of the backrooms on to the sales floor to help customers, as it has been constantly striving to improve customer service. The customer-facing jobs would include positions like working in the online pickup department or as pharmacy technicians. For back-office functions, Wal-Mart plans to automate the work, rather than relying on dedicated accountants and other staff. The changes will be effective this year and extend into 2017.
Wal-Mart stated that the job cut was not a downsizing move, and the affected and displaced workers will find new jobs that involve direct contact with shoppers.
WAL-MART STORES Price and Consensus
WAL-MART STORES Price and Consensus | WAL-MART STORES Quote
Bentonville, AR-based Wal-Mart has been making efforts to understand the evolving needs of its customers to regain their confidence, and thus, boost sales in the face of increased competition from traditional and online players. Additionally, Wal-Mart is making huge investments in e-commerce initiatives to compete with the biggest online retailer Amazon.com (AMZN - Free Report) and to improve customer service.
The company is also paying its workers more and training them to improve its stores’ performance. Wal-Mart being the largest private employer in the U.S. with 2.2 million employees, raised wages of more than 1.2 million employees of Walmart U.S. and Sam’s Club in February, as was announced in Jan 2016.
The move marks the second phase of the company’s two-year $2.7 billion investment in workers. Wal-Mart spent $1 billion on raises and training last year, per the plan announced in Feb 2015 to hike wages of approximately 500,000 full-time and part-time associates at Wal-Mart U.S. stores and Sam's Clubs.
Though the wage hike will raise the expense burden on the retailer and reduce its earnings over the near term, we believe this will keep workers contented and also help improve Wal-Mart’s customer service. Also, it will ultimately encourage shoppers to spend more.
Wal-Mart currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Other well positioned retailers include Tilly's, Inc. (TLYS - Free Report) and The Children's Place, Inc. (PLCE - Free Report) . Both sport a Zacks Rank #1 (Strong Buy).
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>