Wal-Mart To Eliminate Up to 800 Jobs At Headquarters

Wal-Mart is planning to eliminate as many as 800 positions from its corporate office in Northwest Arkansas over the next few weeks as it attempts to adapt to the economy by cutting costs and improving efficiency, the company said yesterday.

Spokesman David Tovar said the move would mainly affect merchandising, real estate, marketing and support staff at Wal-Mart headquarters in Bentonville, Ark. Some positions will not be filled, while others will be relocated to offices across the country, he said.

Tovar said the cuts were necessary as Wal-Mart realigns its business. As it reduces the number of store openings in light of the economic downturn, for example, fewer people are needed in its real estate business. Tovar said some of those positions may be transferred to the team that handles store remodeling.

The cuts represent roughly 6 percent of the 14,000 people who work at the headquarters of the world's largest retailer. Wal-Mart employs about 1.4 million people in the United States, and store employees were not affected by the announcement.

"We do not make these decisions lightly," Wal-Mart chief executive Mike Duke wrote in a memo to employees yesterday. He added that "we must also challenge costs in every corner of the company in order to keep our business strong today and well into the future."

Wal-Mart is one of the few retailers that have posted positive sales as the recession hammers away at consumer spending. Last month, sales at stores open at least a year rose 2.1 percent compared with the same month in 2008, exceeding the company's expectations.

"We would have hoped that during this tough time, the company would have used some of that wealth to reinvest in its workforce," said David Nassar, spokesman for Wal-Mart Watch, a frequent critic funded by the Service Employees International Union.

The retail industry shed about 500,000 jobs last year, according to the Retail Industry Leaders Association, a trade group. Macy's and Home Depot recently announced they would each lay off about 7,000 people. Circuit City's liquidation will affect roughly 30,000 workers.

Tovar said affected employees will receive pay for 60 days with benefits in addition to severance pay. Wal-Mart is also allowing them to apply for positions with the retailer's suppliers immediately, he said.