Report: Walmart to lay off employees after announcing price hikes

Walmart is slashing about 1,500 US jobs as part of a restructuring plan to cut expenses and simplify operations following its recent price hikes. The layoffs will hit employees who work in its global technology operations, e-commerce fulfillment, and its ad sales division Walmart Connect. Walmart, America's largest private employer, has about 1.6 million workers in the U.S. and more than 2.1 million globally.

The layoffs come as Walmart braces for slimmer profits in 2025, with company executives saying stores are raising prices as a direct result of Trump's tariffs . Along with Amazon, Walmart has said President Donald Trump's policies would mean consumers pay more for common products. Trump, who made low prices a central promise of his 2024 campaign, accused Walmart of price gouging and told them to 'eat the tariffs .'

Walmart's job cuts follow more over the past year for thousands of corporate and warehouse workers . In addition to the job cuts, Walmart shuttered its North Carolina office last February in order to relocate employees to main hubs in California and Arkansas . Of the latest job cuts, a Walmart memo read: 'To accelerate our progress delivering the experiences that will define the future of retail, we must sharpen our focus.

'Reshaping our structure allows us to accelerate how we deliver and adapt to the changing environment around us.' The company noted that it will also eliminate roles and add new ones. Walmart was one of the retailers that warned customers about potential price hikes last year before President Donald Trump was inaugurated. It is the nation's biggest importer, with around 60 percent of products coming from China.

Most of these imported goods are clothes, electronics, and toys. Now that tariffs have been imposed, Walmart confirmed the inevitable this month as a result of Trump's trade war . Walmart, Target, and Home Depot executives warned Trump of the tariff effects in April of what the companies called 'a productive meeting.'

However, the retailer surprised Wall Street when they insisted Trump's tariffs could benefit the company . Walmart gave its initial price hike warning after a successful revenue growth during its 2024 third quarter. It is expecting to see its profit shrink this year for the first time since the COVID-19 pandemic.

Despite the price hikes, Walmart reported strong sales and is forecasting gains in market share. The company said inflationary pressure could actually benefit its bottom line by drawing in more price-sensitive shoppers — even from higher-income households. Last month, McMillon joined the bosses of Target and Home Depot to lobby against tariffs at a private meeting with Trump in the White House last month.

In a closed-door meeting with President Donald Trump, the CEOs warned that his aggressive trade policy would disrupt supply chains . 'We had a productive meeting with President Trump and his team and appreciated the opportunity to share our insights,' Walmart said at the time. Target issued a similar statement adding that the meeting was 'to discuss the path forward on trade, and we remain committed to delivering value for American consumers.'