While layoffs are primarily affecting the tech sector, they now appear to be coming to retail as well.
Walmart is laying off hundreds of corporate employees as part of the company’s restructuring, The Wall Street Journal reported.
The fines will affect sectors ranging from commodities trading to real estate and global technology, the WSJ reported. About 200 jobs are being cut at the retailer, a source told the publication.
It hasn’t been an easy year for Walmart and other retail companies. Retailers are experiencing a surplus on inventory, which has led to declines and sales. Both Walmart and Target have said they expect profits to drop given the recent glut of inventory.
In the early days of the pandemic, consumers weren’t buying, and inflation reduced the incentive to spend rational dollars. That, combined with supply chain issues, has created inventory that retailers are now trying to get rid of through sales.
Crunchbase News reports that more than 32,000 workers at US tech companies will be laid off by 2022. So far this year, technology-focused growth stocks seem to be taking a hit. High-profile companies like Shopify and Coinbase have laid off workers, and some companies like Netflix and Robinhood have recently reported a second round of layoffs after cutting staff earlier this year.
As the news of the Walmart layoffs shows, other sectors of the economy cannot be immune from macroeconomic downturns. In the year Founded in 1962, Arkansas-based Walmart is the largest private employer and one of the largest retailers in the United States. When it cut its profit outlook last month, shares of other retailers such as Macy’s and Amazon also fell, CNBC reported.
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