Walmart lays off hundred of workers across five states

According to the New York post, Walmart said in a statement, "We recently adjusted staffing levels at our [fulfillment centers] in select markets to better prepare for the future needs of customers."

Hundreds of workers were laid off in facilities located in New Jersey, Texas, Florida, Pennsylvania and California.

The statement added, "This decision was not made lightly, and we're working closely with affected associates to help them understand what career options may be available at other Walmart locations."

The retail giant did say that the cuts were made due to the elimination of shifts during the evenings and weekends and that the company would try and relocate as many of the workers as possible in house.

Another reason for the layoffs has been advancements in automation and the company has increased investments in automation as part of a "$15 billion capital expenditure budget," reports the Post

Doug McMillon, Walmart's CEO, said he was "most excited about the automation opportunity we have" during a February post-earnings call.

Walmart is the largest employer in the US and operates approximately 5,000 locations across the country.

The move comes as the financial landscape in the US nears uncertainty following the collapse of two major financial institutions. The fall of the banks was due in part to the financial institutions' lack of accounting for risk due to the repercussions of the current high-interest rate financial environment.

Interest rate hikes have been a result of lingering record-high inflation, which has affected Walmarts profit margins along with all of the retail industry.

"In February, Walmart said it expects same-store sales growth at its US locations of just 2 percent to 2.5 percent in fiscal 2024 – down from 6.6 percent the previous year," reports the Post.