Wal-Mart stores Inc. is planning on cutting 2,300 jobs at its Sam’s Club division. According to the Los Angeles Times, the move to cut jobs at the stores is to make the workforce leaner.
Spokesman Bill Durling said, “in total, 2 percent of the 116,000 Sam’s Club employees in the U.S. will lose their jobs. Employees were notified of the layoffs on Friday.”
The Associated Press reported it’s the biggest layoff since 2010 when Sam’s Club laid off 10,000 workers and moved to outsourcing food demonstrations at its stores. The middle-level salaried manager positions are expected to be eliminated and the hourly employees will lose their jobs.
Durling told the Associated Press, “we felt this was the right move to make sure we are positioning ourselves for growing in the future. We are trying to rebalance our resources in the field to make sure we are investing in the clubs that have the higher growth potential and balancing resources across the chain.”
Sam’s Club will be adding more units in the fiscal year and is said to be having a hard time competing with Costco, BJ’s and other online retailers.