Wal-Mart to Cut 7,000 Back-Office Store Jobs
This discussion thread was locked as off-topic by uppityperson (a host of the Latest Breaking News forum).
Source: WSJ
Wal-Mart Stores Inc. plans to cut thousands of back-office positions around the country, a sign that the retailers effort to make its cavernous stores more efficient is also changing the face of its workforce.
The largest private employer in the U.S. is eliminating about 7,000 store accounting and invoicing positions over the next several months. The jobs are mostly held by long-term employees, often some of the highest paid hourly workers in stores. The retailer wants those employees working with shoppers, not in backrooms, say company executives. Centralizing or automating most of their current tasks is more efficient, they say.
The jobs are coveted as a rare desk job in retail. You are not running around the store on your feet all day and receive decent pay, said a Wal-Mart store accounting employee who earns about $13 an hour, or $27,000 a year. Everybody wants to get in there. The jobs never open up, said this person, who has worked at the store for nine years.
The back-office cuts to Wal-Marts 4,600 U.S. stores is a sign that retail workersone of the largest employee cohorts in Americaface big changes as their employers spend heavily to compete with Amazon.com Inc. and grab foot traffic from other chains.
The positions Wal-Mart is eliminating manage an individual stores daily cash flow or process claims from manufacturers delivering goods directly to stores, among other tasks. Starting early next year, much of that work will be handled by a central office or new money-counting cash recycler machines in stores. Wal-Mart tested the change in about 500 stores earlier this year.
The company believes most displaced employees will find customer-facing roles, said Deisha Barnett, a Wal-Mart spokeswoman. Weve seen many make smooth transitions during the pilot, she said. Employees facing cuts could see their salaries go up or down in a new position, she said.
Read more: http://www.wsj.com/articles/wal-mart-to-cut-7-000-back-office-store-jobs-1472743429
Unit 001
(59 posts)and they pay a living wage.
jamzrockz
(1,333 posts)Costco try out their model in middle class area. Their model is so efficient that I am sure it can work where Walmart is dominating right now. But sadly, they would leave all that money on the table and restrict the places where they open their stores
KeepItReal
(7,770 posts)Costco thrives because there still is a middle class to pay memberships and shop there.
I think you mean poorer neighborhoods that would not be predominantly middle income.
Travis_0004
(5,417 posts)Going after wealthier shoppers and only selling in bulk is a different model.
If walmart switched to that model somebody would hate on them since somebody living paycheck to paycheck can not afford to buy 40 rolls of toilet paper at once, or take it home by public transport.
benld74
(10,295 posts)KeepItReal
(7,770 posts)Eom
Travis_0004
(5,417 posts)KeepItReal
(7,770 posts)It's the same type of members only, warehouse type store.
lordsummerisle
(4,653 posts)BumRushDaShow
(172,250 posts)But the articles did remind me about when they had announced this thing about putting more people out on the floor. Apparently the outsourcing of the behind-the-scenes stuff that still needs to happen.
raven mad
(4,940 posts)they really think they are paying a "fair wage".
I haven't set foot in one in about 25 years, and won't. I'll pay more for local goods gladly.
mpcamb
(3,242 posts)Who are these people and what do they make per hour?
(What I'm driving at is who gets hurt in this.)
former9thward
(33,424 posts)left-of-center2012
(34,195 posts)The employees who do not work directly with shoppers.
The work in the office, off the shoppng area.
uppityperson
(116,026 posts)
Kick in to the DU tip jar?
This week we're running a special pop-up mini fund drive. From Monday through Friday we're going ad-free for all registered members, and we're asking you to kick in to the DU tip jar to support the site and keep us financially healthy.
As a bonus, making a contribution will allow you to leave kudos for another DU member, and at the end of the week we'll recognize the DUers who you think make this community great.