Walmart laying off hundreds from its warehouses as it doubles down on automation and braces for new era in online shopping
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- Walmart plans layoffs at five e-commerce fulfillment warehouses, per Reuters.
- The move comes as Walmart executives have touted new warehouse automation.
- While e-commerce grew rapidly during the pandemic, that growth has tapered off.
Walmart is set to lay off hundreds of workers in its e-commerce fulfillment center, Reuters reported.
Workers at warehouses in Pedricktown, New Jersey; Fort Worth, Texas; Chino, California; Davenport, Florida; and Bethlehem, Pennsylvania, were given 90 days to find jobs at other company locations, a spokesperson told Reuters.
Walmart did not immediately respond to Insider's request for comment.
The layoffs come as Walmart has increasingly touted warehouse automation, including its "next-generation fulfillment center." The layoffs also highlight consumers' shifting shopping habits. While e-commerce grew rapidly during the pandemic, that growth has tapered off, forcing companies to shift resources. Although Walmart noted it had seen 17% growth year-over-year growth in e-commerce in the fourth quarter.
"We recently adjusted staffing levels to better prepare for the future needs of customers," a Walmart spokesperson told Reuters.
In the company's latest earnings call in February, Walmart's Chief Financial Officer, John David Rainey, highlighted the company's plans for automation while noting the difficult economic climate.
"You will begin to see the significant benefits from the investments that we're making in things like our supply chain automation and our expanded e-commerce capabilities," he said. "The macro pressures this year may obscure some of that progress but won't take away from the long-term promise of many of these initiatives."