Walmart Inc., the nation's largest private employer, is cutting hundreds of jobs and closing an office in Charlotte, North Carolina, as part of a broader effort to consolidate its corporate workforce in Arkansas and California. The move follows a company-wide strategy shift to bring more employees back to in-person work at its key hubs.
In a memo sent to employees on Tuesday, Walmart's Chief People Officer Donna Morris informed staff that some office-based roles would be eliminated, while employees in Hoboken, New Jersey, and other smaller locations would need to relocate to Walmart's headquarters in Bentonville, Arkansas, or its office in Sunnyvale, California.
"We are making these changes to put key capabilities together, encouraging speed and shared understanding," Morris wrote in the memo. "Through this review process, we have eliminated some roles as we streamline how we work."
Layoffs and Relocations Reflect Larger Corporate Strategy
While Walmart has not disclosed the exact number of employees affected, those asked to relocate will have at least a month to decide. The company has pledged to provide relocation support or severance packages for those impacted.
Tuesday's announcement aligns with Walmart's broader restructuring strategy, first unveiled in May 2024, which called for closing smaller satellite offices and consolidating corporate employees into fewer, larger hubs. As part of this shift:
- Corporate workers in Dallas, Atlanta, and Toronto were previously asked to relocate to central hubs.
- Remote employees were instructed to return to office settings.
- The company's new Bentonville headquarters, a 350-acre campus, officially opened last month.
- Walmart is also expanding office spaces in Sunnyvale, Bellevue, and Hoboken, while maintaining a fashion-focused office in New York City.
Automation Push and Higher Salaries for Top Managers
Walmart's workforce strategy is evolving as the company accelerates its automation efforts. The retailer aims to have 65% of its stores automated by 2026, with 55% of fulfillment center packages processed through automated facilities by January 2026-a shift expected to lower unit costs by 20%.
Despite job cuts in certain areas, Walmart is significantly increasing salaries for its top-performing managers. Last month, the company announced that its regional managers could now earn between $420,000 and $620,000 annually, a substantial increase from the $320,000 to $570,000 range in 2023.
- Minimum base pay for regional managers was raised to $160,000, up $32,000 from 2022.
- Maximum base pay increased to $260,000.
- Stock grants rose from $75,000 to $100,000 annually.
- Potential bonuses increased to 100% of base salary, up from 90% in 2023.
In-Person Work Mandate Continues
The latest job cuts and relocations reinforce Walmart's commitment to in-person collaboration, a policy it first implemented in February 2022. The company has argued that on-site work fosters innovation, strengthens corporate culture, and improves efficiency.
"Our values and culture are strategic differentiators for us as a company, and they are fostered by being together," Morris stated. "We've already seen the benefits of having more teams working together in person."
This mirrors broader trends among major corporations like Amazon, Google, and Microsoft, which have also pushed employees to return to physical office spaces.
