Stock Crash Fall Out Continues: Walmart Lays off Hundreds of Corporate Workers

Joel Eisenberg

Last week’s stock plunge continues to impact the company’s business.

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Author’s Note

This article is based on corporate postings and accredited media reports. Linked information within this article is attributed to the following outlets: Forbes.com, Reuters.com, The Wall Street Journal, and CNBC.com.

Introduction

Last week, NewsBreak published two articles of mine regarding the recent Walmart stock crash. See here for “Walmart Shares Tumble Following Company Profit Warning,” and here for “Walmart Announces Sweeping Changes For 28 Locations Based in Part on Company’s Stock Crash.”

As excerpted from the former article: The superchain largely blames inflation, invigorating recession concerns and redefining consumer habits across-the-board. Its stock drop has negatively impacted the share prices of other retailers.

Walmart plunged 8% on the date of the drop.

The latter article further explains the matter, referencing another recent report: Forbes.com elaborated on the issue, in its piece entitled “Walmart Shares Plunge Nearly 10% After Company Warns Of Profit Slowdown Due To Inflation.” From the article: The nation’s largest retailer announced that it was lowering its profit outlook for the rest of 2022, “primarily due to pricing actions aimed to improve inventory levels at Walmart and Sam’s Club in the U.S.”

On August 3, news hit the media of further repercussions of the profit slowdown. From the Wall Street Journal report referenced by Reuters.com, “Walmart to Cut Hundreds of Corporate Jobs - WSJ”: Walmart Inc is cutting hundreds of corporate roles in a restructuring effort, the Wall Street Journal reported on Wednesday, citing people familiar with the matter. Around 200 jobs are being cut, the WSJ said, adding that the retailer notified employees in its Bentonville, Arkansas headquarters and other corporate offices of its restructuring move. (https://on.wsj.com/3JrppOz)

Let us review further.

Walmart, 2022

What is presently occurring in the superchain is a response not unlike those other large retailers have taken under similar circumstances. As Walmart remains the country’s highest-grossing such entity, any notable fluctuation in stock price resulting from lower-than-expected earnings reports tends to make mainstream news due to, in part, its impact on similar companies.

Other media outlets are reporting these layoffs are only the first of several expected. Per CNBC.com’s “Walmart Lays Off Corporate Employees After Slashing Forecast”: Walmart confirmed on Wednesday that it has begun to lay off corporate employees… Anne Hatfield, a Walmart spokesperson, declined to comment on which divisions were affected but said the retailer is still hiring in parts of its business that are growing, including supply chain, e-commerce, health and wellness, and advertising sales. 

Conclusion

As I’ve stated previously in other articles, Walmart is in no danger, imminently or otherwise, of shutting down. However, business challenges continue to plague the company. Changes have been expected moving forward as a repercussion of recently reported disappointing financial metrics and subsequent stock drop, including possible closures of more locations.

The news of mass layoffs, though, are concerning analysts, as the company is increasingly scrutinized in this regard moving forward.

I will post any further updates here, as they happen, on NewsBreak.

Thank you for reading.

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I am an award-winning author, screenwriter for film and television, and producer. My mission on News Break is to share socially important perspectives on both culture and pop-culture. Member of PEN America, and the WGA.

Northridge, CA
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