Walmart just announced the layoff of 10% of its US workforce. This amounts to almost 12,ooo job losses at it's Sam's Club outlets. In a recession, Walmart is considered to be a safe bet. People shop Walmart to buy things for less than is expected at smaller retailers. Walmart is considered to be one of the strongest companies in the world. Supposedly the company has been weathering the recession better than most retailers.
Most of the jobs being lost are part-time demonstration jobs. Sam's Club revenue dropped .7% in the third quarter of 2009. According to Walmart, the jobs will be outsourced to other companies.
The employee reduction plan may very well be simply a cost cutting move. However, most of these jobs are relatively low wage. At best, the move is not a good sign for the economy. The decision may be symbolic of more ecnonomic trouble ahead for the US economy. This will be one news item to watch in the coming months to see how things play out.
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