Sam's Club, the warehouse retail division of Wal-Mart Stores Inc., laid off 120 corporate employees Friday as part of efforts to improve operations.
Also on Friday the company announced internally that changes are coming to its technology operations, and corporate employees were informed of the pending retirement of Chief Administrative Officer Rollin Ford.
Chief Executive Officer Doug McMillon announced via memo that Ford plans to retire in July after 32 years with Wal-Mart. Global E-Commerce CEO Neil Ashe informed select employees via memo that he will now also oversee Walmart Technology, a combination of the company's internal and external technology operations. Wal-Mart also announced it will close 269 stores around the world, including 154 in the U.S. and Puerto Rico.
Layoffs at Sam's Club follow a round of 450 job cuts at Wal-Mart's home office in October. Sam's Club employs about 1,500 as part of its headquarters in Bentonville. Employees laid off are eligible for severance and have been encouraged to apply for other jobs within Wal-Mart Stores Inc.
"Any time you re-examine strategic direction there are typically realignments that go along with that," spokesman Bill Durling said. "That's essentially what we're doing today."
Streamlining operations of Wal-Mart's various technology departments was the focus of Friday's announcement to combine @WalmartLabs and Walmart ISD. Walmart ISD, which primarily focuses on in-store technology, has operated independently of @WalmartLabs, the online technology and innovation arm of Wal-Mart. Those departments recently collaborated on Walmart Pay, a mobile payment system.
Chief information officer Karenann Terrell will oversee in-store and business operations, along with the global customer insights and analytics department and global business process department. Jeremy King will continue to oversee @Walmart Labs. Both will report to Ashe, who told employees in his memo "most of you will see no change to your role."
"Walmart has an incredible history of innovation and technology. Today, we have one of the most diverse and talented groups of technologists in the world," Ashe wrote. "Combining and unlocking the full potential of Walmart Technology for our customers and our business is going to be both challenging and rewarding for all of us."
Tweaking the retailer's supply chain as it continues to blend its online and in-store shopping experiences or customers will be part of Ford's responsibilities until his departure in July. Ford, who has formerly served as the company's chief information officer, will be part of a supply chain reorganization effort that began over the past year.
"He is a true champion of our culture and has been a trusted peer and advisor of mine for years," McMillon said in a memo announcing Ford's retirement. "We will be celebrating Rollin and his service to the company before his retirement later this year."
Business on 01/16/2016