BENTONVILLE, Ark. — Walmart, the world’s largest retailer and the largest private employer in the United States, is laying off approximately 1,500 employees in a sweeping restructuring effort aimed at simplifying operations, accelerating decision-making, and positioning the company for future growth.
The job cuts will affect teams across several key business areas, including global technology operations, e-commerce fulfillment in U.S. stores, and Walmart Connect, the company’s growing retail media and advertising division. The decision, confirmed through internal communications obtained by Reuters and first reported by The Wall Street Journal, is part of a broader initiative to reconfigure internal structures, eliminate redundancies, and invest in new capabilities that align more closely with Walmart’s long-term strategic goals.
With more than 2.1 million employees globally, including 1.6 million in the U.S., Walmart’s organizational shifts significantly impact the retail labor market.
“To accelerate our progress delivering the experiences that will define the future of retail, we must sharpen our focus,” read an internal memo circulated to employees this week and reviewed by Reuters. While some positions will be eliminated, the restructuring will also create new roles, especially in areas tied to digital innovation, data analytics, and retail media, that the company views as critical to its evolving business model.
The restructuring comes at a time when Walmart, like many of its retail peers, is navigating rising operational costs, geopolitical uncertainty, and the ongoing impact of tariffs on imported goods. The company, which sources roughly 60% of its imports from China, including clothing, electronics, and toys, recently announced it would raise prices on some items before the end of May in response to higher tariff-related expenses. The move prompted criticism from President Donald Trump, who has been vocal about U.S. companies passing on the cost of trade policy to consumers.
Despite these challenges, Walmart has reported strong sales growth in recent quarters, buoyed by its expansive store network, robust grocery business, and increasing investment in digital commerce. Executives say the company remains committed to maintaining price competitiveness and operational efficiency despite inflationary pressures.
The company has already taken steps to consolidate its workforce geographically, including closing an office in North Carolina earlier this year and relocating employees to key hubs in Bentonville, Arkansas, and Northern and Southern California.
Walmart Connect, one of the divisions impacted by the restructuring, has been a central focus of the company’s growth strategy in recent years. As retailers continue to invest in retail media networks to capture a larger share of advertising spend, Walmart has sought to scale its capabilities to compete with Amazon, Target, and Kroger in the increasingly lucrative retail media space. The shake-up at Walmart Connect suggests a recalibration of strategy and talent to meet these ambitions.
