WSJ: Wal-Mart Dumps 2,300 Workers From Sam's Club

Friday, 24 Jan 2014 07:31 PM

By Dan Weil

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The list of layoffs in retail-land continues to grow larger. Wal-Mart has decided to drop 2,300 workers at its Sam's Club warehouse division, the unit's largest round of job cuts in four years.

Half the affected workers will be salaried assistant managers, and the other half will be hourly employees at underperforming stores, The Wall Street Journal reports.

Sam's now has the same number of managers in every store, regardless of how much revenue it generates.

Editor's Note: Get Rich Doing This ‘One Thing’ Every Day

"Over the years, we've migrated to a top-heavy structure in our management," Sam's Club CEO Rosalind Brewer told The Journal. "What this does is align the number of assistant managers to the sales of the club and to where our growth areas are."

Sam's wants to compete better with brick-and-mortar rival Costco in addition to challenging Internet membership clubs like Amazon's Prime.

Brewer hopes to double Sam's revenue to $100 billion, making it as big as Costco.

The layoffs come on the heels of job cuts announced earlier this month at Macy's, Target and J.C. Penney. Brick-and-mortar retailers are struggling to compete with their online rivals.

Major retailers have announced numerous store shutdowns in recent months, and the list will only grow longer, experts say.

The overall amount of retail space nationwide will drop between one-third and one-half within the next five to 10 years, Michael Burden, a principal with Excess Space Retail Services, tells CNBC. "I believe we're going to hear a lot more announcements in the coming months," he said.

Editor's Note: Get Rich Doing This ‘One Thing’ Every Day

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