Walmart will cut $5 million in labor expenses at stores in the United States, including $1 million in Chicago, according to an internal memo.
Walmart said the layoffs are part of a “recovery plan” for the U.S. that also includes the hiring of a new senior vice president for manufacturing and retail.
The company is cutting jobs across the country as it seeks to make the transition to a leaner and cheaper business model.
“Our commitment to a cost-effective, innovative and high-quality supply chain is the foundation of our business and our culture,” Walmart said in a statement.
“These changes reflect our continued efforts to move to a more efficient and cost-efficient approach to operations and operations are the foundation for our success.”
Walmart has struggled to meet demand for its grocery products in recent years as more shoppers have switched to online shopping.
The chain recently closed three stores in Texas and announced plans to close more in a bid to boost margins and meet the needs of customers who have turned away from the chain in recent weeks.