Walmart has been in the news lately for laying off several employees at its five e-commerce fulfillment centres across the US due to a reduction or elimination of evening and weekend shifts. However, impacted workers have been assured by the company that they will receive payment for 90 days during their job search at other Walmart locations, which may include technologically advanced e-commerce distribution centres.
These layoffs have raised concerns about a possible economic recession in the US, with many economists predicting a downturn this year.
Retailers have already announced over 17,000 job cuts in 2023 so far, compared to just 761 in the same period last year. Walmart’s heavy investment in automation technology has been cited as one reason for the layoffs, with the company partnering with automation firms like Knapp to improve e-commerce order processing efficiency.
Despite the layoffs, Walmart remains the largest private employer in the US, with roughly 1.7 million American workers. Laid-off employees may be eligible for positions at Walmart’s 5,000 stores, which are increasingly being used to ship orders to customers. Walmart has also increased its minimum wage by $2 to $14 per hour, although this is still lower than the starting wage at Target and Amazon.
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