Walmart Cuts 1,500 Tech Jobs to Streamline Operations Amid Economic Fluctuations

Walmart, the world's largest retailer, has announced significant job cuts affecting approximately 1,500 technology positions. This move is part of a broader effort to reduce costs and adapt to economic fluctuations. The company's chief technology officer, Suresh Kumar, and the CEO of Walmart U.S., John Furner, stated in a memo that these adjustments aim to streamline decision-making processes and reduce complexity. While some positions will be eliminated, new roles will also be created to support the company's evolving needs.

The restructuring is focused on simplifying the technology team's structure to accelerate operations and better respond to market changes. Walmart U.S. is also making personnel adjustments to enhance efficiency. Cedric Clark, the executive vice president of store operations at Walmart U.S., noted that the process of store delivery involves multiple touchpoints, leading to friction. By reducing digital order-related friction, the company aims to benefit consumers. Adjustments are being made to positions involved in handling these orders.

In addition to the technology team, Walmart is also restructuring its advertising business. The company's spokesperson emphasized that these changes are part of Walmart's growth strategy and are not related to tariffs. The spokesperson declined to provide further comments.

Prior to this round of job cuts, Walmart had undergone a reorganization in February, during which the company eliminated some positions and required employees to relocate to central offices in Arkansas and California. Walmart employs approximately 1.6 million people in the United States, making it the largest private employer in the country.

Over the past few quarters, Walmart has outperformed its competitors. However, the company recently warned that rising prices due to tariffs and economic instability could impact its performance. Walmart expects to start increasing prices on some items this month. These statements drew criticism from former U.S. President Donald Trump, who took to social media to criticize Walmart for its profits and urged the company to absorb the tariffs rather than passing them on to consumers.