Walmart to lay off corporate employees after cutting profit outlook

Aug. 3 (UPI) -- Walmart on Wednesday confirmed that it plans to lay off corporate employees after cutting its profit outlook last week.

The retailer began notifying employees in its corporate offices in Bentonville, Ark., and elsewhere of the layoffs affecting about 200 employees in its merchandising, global technology and real-estate teams departments, The Wall Street Journal reported.

Walmart confirmed the layoffs in a statement to CNBC, describing them as a means to "better position the company for a strong future."

Walmart representative Anne Hatfield, however, declined to say how many workers would be impacted and what divisions are expected to see cuts, adding that the company was still hiring in growing departments such as supply chain, e-commerce, health and wellness, and advertising sales.

"Shoppers are changing. Customers are changing," she said. "We are doing some restructuring to make sure we're aligned."

Walmart is the nation's largest employer with about 1.6 million workers in the United States.

The news of the layoffs came after Walmart cut its quarterly and full-year profit guidance late last month, citing the impact of inflation on consumer spending.

It noted that while customers spent more on necessities such as groceries and fuel, they were less likely to spend on apparel and other high-margin merchandise, noting it would have to cut prices to sell those items.

Competitors Target and Bed Bath and Beyond had previously reported that they were saddled with extra inventory amid rising inflation.