Walmart is reportedly closing several locations across the U.S. this year, citing a recent decline in profits.
According to the large retail behemoth, several staff members will be laid off, leaving several hundred workers unemployed across the US. This is not a recent trend, as Walmart has been ceasing operations in several businesses over the years that they have deemed to be underperforming.
Stores will be closing in Washington, DC, Florida, Illinois, Hawaii, Indiana, Minnesota, Oregon, New Mexico, Wisconsin, and Washington state. Meanwhile, outlets in New Jersey, Texas, Florida, and Pennsylvania will reduce shifts for employees working in non-retail positions, resulting in over 200 layoffs.
The commercial giant employs over 1.7 million staff members in the U.S., making it the largest employer in the country. Many of the employees working in the e-commerce sphere can be reassigned to retail positions.
However, the trend sends out a potentially grim reminder for the future of the United States economy and its workforce. This news is emphasized by the fact that the CEO of Walmart, Doug McMillon, has enthusiastically announced that the company plans to invest greatly in artificial intelligence (AI) and automation over the next year.
During fiscal year 2022, the company has set aside 14 billion dollars to invest in automation to enhance their supply chain. The effort allows them to compete with several online giants like Amazon.
“We weren’t the first place you go when it’s time to buy products online. We’re trying to change that obviously,” Walmart CEO Doug McMillion said at the time. “You’ve got to earn that. You’ve got to have the assortment. You got to have the price. You got to provide service. You got to deliver when you’re supposed to deliver.”
In the first quarter of the fiscal year 2022, Walmart expanded its online sector by 69 percent, and recent trends show it to be continuously growing.
According to Walmart representatives, artificial intelligence helps the company predict the demand for their products. The technology gathers data from Walmart’s grocery pickup service to find out when customers want certain items, as well as if they prefer them to be delivered straight to their door or picked up from a physical store. The purpose of the AI is to increase the efficiency of the company’s supply chain.
