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Sam’s Club Layoffs – Wal-Mart Cuts 2300 Jobs

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Wal-Mart – the epitome of the fair employer who is currently being sued by the Feds for unfair labor laws and employment practices, is now cutting 2300 jobs from its membership only company, Sam’s Club.

Today, Wal-Mart employs 2.2 million people worldwide and serves 200 million customers each week at more than 10,000 stores in 27 countries.

The layoff is approximately 2 percent of the club’s U.S. employee count, which now totals 116,000. It’s the second largest layoff by Sam’s since 2010 when 10,000 workers were let go because Sam’s decided to outsource its food sample carts that are demonstrated at their U.S. stores.

Sam’s Club is striving to compete with Costco Wholesale Corp. and online companies like Amazon.com’s Prime.

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Or could they just be following other layoffs by major retailers in January, such as Macy’s, J.C. Penney and Target?

Bill Durling, a spokesman at Sam’s Club, explained that just under half of the cuts were directed at salaried assistant managers, and some hourly workers.

“We felt this was the right move to make sure we are positioning ourselves for growing in the future,” said Durling in an interview with the Associated Press. “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.”

There are a total of 630 Sam’s Club stores in the U.S. and Puerto Rico, and in the coming fiscal year, which begins on February 1st, 15 more clubs are going to be added.

So why the layoffs? Sources say that although Wal-Mart has not yet released its Sam’s Club holiday sales figures, its recent financial performance has been underwhelming. And although Wal-Mart beat sales expectations in the third quarter, the company trimmed its earnings forecast due to economic difficulties among its core customers which were affecting the retailer’s bottom line.

When you eliminate fuel sales at Sam’s Club, the stores that were open for a year or more only produced 1.1 percent more profit in the third quarter, which is what ultimately caused the layoffs.

The membership only company generates 12 percent of Wal-Mart’s net sales, or about $56.4 billion annually.

On the brighter side, Durling said that those workers who received notices will continue to get paid for the next 60 days giving them ample time to re-apply for opportunities at Wal-Mart or other areas of Sam’s Club’s operations. After that time expires, they will receive severance.

“We’re trying to treat our associates with utmost care and respect,” he added.

Image via Wikimedia Commons, #2

Sam’s Club Layoffs – Wal-Mart Cuts 2300 Jobs
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  • dee miller

    there are never enough employee's to help lifting heavy objects as it is and now your cutting worker's? you must care more obout your revenew than your patron's who shop. i've been told by 3 employee's, (when i asked for help w/cases of water)he'll help you over there, then the guy sweeping will help you, he's already there. no one there. i struggled till a patron helped me. and walmart is even worse, you acutally have to hunt an employee to help, lot's of times i just leave. these 2 stores are only 2 blks away but i'll go to target instead or von's. these is the college grove stores in san diego. whats wrong with your ceo's or v.p's? crazy comes to mine!!!

  • drod

    I wish they would shut all of the Wal-Mart and Sams clubs down. I do not shop there if I can help it. Usually about once a year if that. They always treated their employees like dirt and they should never have won that classic action lawsuit discriminating against women. But money talks and pays for bribes among our judicial and politicians to sway their decision against the very people that make this country what it is today.

  • Phillip

    I know exactly what it is, they hire alot at first, cross train everyone on doing all jobs, but not doing alot.. once everyone knows how to do all, then cut jobs, then expect the employees left behind to pick up the slack without having to give them a raise or promotion.. we are not stupid..only the ones that stick around and accept twice the work on same pay are

    • Phillip

      sorry had to add this.. case in point why are there like 36 check out lanes, if only 6 are ever in use at any point during the day

  • joe

    Wal-Mart’s the devil it destroys lives and treats there employees like dogs so keep shopping there everybody and help destroy the American way of life