Wal-Mart Stores, Inc. (NYSE:WMT) is reportedly planning to lay off hundreds of employees in the very near future.
Insider sources claim that Wal-Mart Stores, Inc. will be removing hundreds of jobs from its human resources division. This includes cuts at its home office and regional offices. The job cuts may also spread to other departments of the retail chain.
According to the insider sources, the Wal-Mart Stores, Inc. jobs cuts will occur by the end of the month. One possible reason for the jobs cuts is the view that the human resources division is too large. Some executives also believe its tasks can be taken care of by external workers, reports Business Insider.
“As we’ve previously shared, we are always looking for ways to operate more efficiently and effectively,” Greg Hitt, a Wal-Mart Stores, Inc. spokesman, told Fortune. “While we continually look at our corporate structure, we have not made any announcements.”
Wal-Mart Stores, Inc. employs 18,000 workers at its headquarters in Bentonville, Ark., which means the job cuts would only be small compared to its total team there. Part of the reason for the job cuts could be the retail company’s decision to strengthen its online capabilities and to reduce cost after raising its minimum wage for employees.
If the report holds true and Wal-Mart Stores, Inc. does cut the jobs before the end of January, it will mean that it eliminated those employees before the end of its current fiscal year.
WMT stock was up slightly as of Noon Wednesday.