Walmart is cutting hundreds of corporate jobs and requiring most remote workers to relocate to its main tech offices or leave the company. This decision was reported by Reuters on Tuesday, citing a source familiar with the matter. The U.S. retail giant’s workers in smaller offices located in Dallas, Atlanta, and Toronto are being asked to move to central hubs such as Walmart’s corporate headquarters in Bentonville, Arkansas, as well as Hoboken, New Jersey, or Sunnyvale, California. These smaller hubs will be closed later this year.

Relocation or Severance

During a “business update” call with employees on Monday, remote workers were given until July 1 to decide on relocating or quitting with severance, according to the source who requested anonymity. Employees who choose to leave will receive two weeks’ pay for every year they worked at Walmart as part of their severance package.

Walmart’s Efforts to Cut Costs

Walmart’s job cuts highlight its ongoing efforts to reduce costs as discretionary spending in the United States remains strained. According to surveys by Deloitte, American spending on non-essential, discretionary items like clothing has remained weak compared to 2021. Walmart is set to report its first-quarter results on Thursday. As of January 31, Walmart employed about 2.1 million workers, most of whom are store and warehouse associates. On Tuesday, Walmart shares were down 1.2% at $59.66 in midday trading.

New Headquarters and Operational Efficiency

Walmart is currently building a new headquarters complex in Arkansas, just a few miles from its existing one. The new campus, built on a 350-acre property, will include 12 office buildings, a hotel, a childcare and fitness center, and multiple outdoor spaces with restaurants and stores, according to Walmart’s website. The company did not immediately respond to a request for comment by Reuters.

“This is likely just part of a broader push towards operational efficiency. The mandate that remote workers report into the office is a cloaked way to get people to quit instead of doing a layoff,” said Brian Jacobsen, chief economist at Annex Wealth Management, which holds Walmart in mutual funds and ETFs it manages. “Giving people a choice to relocate to a hub isn’t much of a choice. It’s more of a choice of whether to quit or not,” Jacobsen added.

Recent Walmart Developments

Last month, Walmart announced it would close all 51 of its health clinics and shut down its virtual healthcare operations, citing unsustainable business models. Additionally, the company said last year it expects about 65% of its stores to be serviced by automation by the end of its fiscal year 2026.

Walmart’s recent corporate job cuts and relocation mandates underscore the company’s focus on cost-cutting and operational efficiency. As the retail giant continues to adapt to changing market conditions, the impact on its workforce and overall business strategy remains a critical area of focus.

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