In 2025, Walmart Inc., the world’s largest retailer and one of the biggest private employers in the United States, has initiated significant layoffs targeting its corporate staff. These cuts come amid ongoing efforts to streamline operations and reduce costs in a volatile economic environment. While Walmart has long been known for its extensive retail presence with over 1.6 million US. employees, it is now focusing on reshaping its corporate and technological divisions to enhance efficiency and adaptability. Sources reveal that the downsizing primarily affects the global technology team and certain advertising roles, with fewer than 1,500 employees impacted overall.
This restructuring is a strategic move to reduce complexity and accelerate decision-making in the face of rapidly evolving retail challenges. Although Walmart has outperformed many competitors recently, economic pressures such as inflation and tariffs continue to weigh heavily on the company’s outlook.
Walmart’s layoff announcement and strategic intent
According to a report by Bloomberg citing insider sources, Walmart has begun cutting corporate staff at its Bentonville, Arkansas headquarters and other offices. The layoffs are part of a broader initiative aimed at cost-cutting and improving operational efficiency amid ongoing economic volatility. While Walmart has not publicly commented on the layoffs, internal communications from senior leadership shed light on the company’s rationale.
An internal memo signed by Walmart’s Chief Technology Officer (CTO) Suresh Kumar and US. Chief Executive Officer (CEO) John Furner outlines that the staffing changes are designed to simplify the organizational structure, accelerate decision-making processes, and reduce operational complexities. The memo also notes that Walmart is not only eliminating some roles but simultaneously creating new positions that better align with future business priorities.
Walmart slashes 1,500 tech jobs
Global technology team restructuring
The most affected group appears to be Walmart’s global technology team, which plays a crucial role in supporting the retailer’s vast digital and supply chain infrastructure. Sources indicate that fewer than 1,500 employees will be impacted by the cuts within this division.
The restructuring aims to simplify the tech team’s structure to enable faster responses to market changes and customer demands. By removing layers of management and reducing friction in workflows, Walmart hopes to enhance agility and innovation within its technology operations.
Advertising business overhaul
In addition to the technology team, Walmart is revamping its advertising business. The internal memo reveals changes to the structure of advertising roles, indicating a strategic shift to optimize Walmart’s digital marketing efforts and better leverage data-driven ad platforms.
This move reflects Walmart’s increased emphasis on competing in the digital advertising space, where it faces stiff competition from giants like Amazon and Google. Streamlining advertising operations is expected to enhance Walmart’s ability to target customers more effectively and drive revenue growth.
Operational efficiency and customer experience enhancements
Store fulfillment and order management
Cedric Clark, Executive Vice President of Store Operations at Walmart US, highlighted in a separate memo the challenges associated with store fulfillment. He explained that the current process involves multiple points of contact, which can create friction and inefficiencies, especially around digital orders.
To address these issues, Walmart is making changes to roles that manage digital orders and store fulfillment processes. These adjustments aim to smooth operations, reduce delays, and ultimately improve the customer experience by making online order fulfillment faster and more reliable.
Walmart’s market performance amid restructuring
Despite the layoffs, Walmart has maintained strong market performance in 2025. As of May 21, Walmart shares had risen approximately 6.7% for the year, outperforming the S&P 500 index, Bloomberg reports. This reflects investor confidence in Walmart’s ability to navigate economic headwinds through strategic restructuring and operational improvements.
However, Walmart has also issued warnings about potential price increases driven by higher tariffs, a stance that recently drew criticism from former President Donald Trump. The company’s ability to manage inflationary pressures while maintaining competitiveness will be critical in the coming quarters.
Previous reorganization efforts
This round of layoffs follows a broader reorganization earlier in the year, in February 2025, when Walmart cut some jobs and consolidated offices by relocating employees to central hubs in Arkansas and California. This earlier restructuring was part of Walmart’s ongoing efforts to adapt its business model amid shifting retail landscapes and growing e-commerce demands.
With a workforce of approximately 1.6 million employees in the US., Walmart remains the country’s largest private employer. The current corporate-level layoffs signal a more focused approach to optimizing internal functions, particularly in technology and digital services.
Economic and industry context driving Walmart’s decisions
The retail sector continues to face multiple challenges in 2025, including:
In this context, Walmart’s decision to cut corporate roles while creating new positions aligned with future priorities reflects a strategic balance between cost management and growth-oriented transformation.
Also read | Tech layoffs 2025: Over 61,000 jobs cut as Microsoft, Google, Amazon, and CrowdStrike reshape workforce
This restructuring is a strategic move to reduce complexity and accelerate decision-making in the face of rapidly evolving retail challenges. Although Walmart has outperformed many competitors recently, economic pressures such as inflation and tariffs continue to weigh heavily on the company’s outlook.
Walmart’s layoff announcement and strategic intent
According to a report by Bloomberg citing insider sources, Walmart has begun cutting corporate staff at its Bentonville, Arkansas headquarters and other offices. The layoffs are part of a broader initiative aimed at cost-cutting and improving operational efficiency amid ongoing economic volatility. While Walmart has not publicly commented on the layoffs, internal communications from senior leadership shed light on the company’s rationale.
An internal memo signed by Walmart’s Chief Technology Officer (CTO) Suresh Kumar and US. Chief Executive Officer (CEO) John Furner outlines that the staffing changes are designed to simplify the organizational structure, accelerate decision-making processes, and reduce operational complexities. The memo also notes that Walmart is not only eliminating some roles but simultaneously creating new positions that better align with future business priorities.
Walmart slashes 1,500 tech jobs
Global technology team restructuring
The most affected group appears to be Walmart’s global technology team, which plays a crucial role in supporting the retailer’s vast digital and supply chain infrastructure. Sources indicate that fewer than 1,500 employees will be impacted by the cuts within this division.
The restructuring aims to simplify the tech team’s structure to enable faster responses to market changes and customer demands. By removing layers of management and reducing friction in workflows, Walmart hopes to enhance agility and innovation within its technology operations.
Advertising business overhaul
In addition to the technology team, Walmart is revamping its advertising business. The internal memo reveals changes to the structure of advertising roles, indicating a strategic shift to optimize Walmart’s digital marketing efforts and better leverage data-driven ad platforms.
This move reflects Walmart’s increased emphasis on competing in the digital advertising space, where it faces stiff competition from giants like Amazon and Google. Streamlining advertising operations is expected to enhance Walmart’s ability to target customers more effectively and drive revenue growth.
Operational efficiency and customer experience enhancements
Store fulfillment and order management
Cedric Clark, Executive Vice President of Store Operations at Walmart US, highlighted in a separate memo the challenges associated with store fulfillment. He explained that the current process involves multiple points of contact, which can create friction and inefficiencies, especially around digital orders.
To address these issues, Walmart is making changes to roles that manage digital orders and store fulfillment processes. These adjustments aim to smooth operations, reduce delays, and ultimately improve the customer experience by making online order fulfillment faster and more reliable.
Walmart’s market performance amid restructuring
Despite the layoffs, Walmart has maintained strong market performance in 2025. As of May 21, Walmart shares had risen approximately 6.7% for the year, outperforming the S&P 500 index, Bloomberg reports. This reflects investor confidence in Walmart’s ability to navigate economic headwinds through strategic restructuring and operational improvements.
However, Walmart has also issued warnings about potential price increases driven by higher tariffs, a stance that recently drew criticism from former President Donald Trump. The company’s ability to manage inflationary pressures while maintaining competitiveness will be critical in the coming quarters.
Previous reorganization efforts
This round of layoffs follows a broader reorganization earlier in the year, in February 2025, when Walmart cut some jobs and consolidated offices by relocating employees to central hubs in Arkansas and California. This earlier restructuring was part of Walmart’s ongoing efforts to adapt its business model amid shifting retail landscapes and growing e-commerce demands.
With a workforce of approximately 1.6 million employees in the US., Walmart remains the country’s largest private employer. The current corporate-level layoffs signal a more focused approach to optimizing internal functions, particularly in technology and digital services.
Economic and industry context driving Walmart’s decisions
The retail sector continues to face multiple challenges in 2025, including:
- Economic volatility: Inflationary pressures, global supply chain disruptions, and fluctuating consumer spending habits force retailers to manage costs carefully.
- Technological transformation: The rise of e-commerce and digital customer engagement requires continuous innovation and investment in technology.
- Competitive pressure: Walmart competes with Amazon and other online retailers, necessitating agile operations and strong digital marketing strategies.
- Tariff and trade policies: Changes in tariffs and trade regulations impact product costs and pricing strategies.
In this context, Walmart’s decision to cut corporate roles while creating new positions aligned with future priorities reflects a strategic balance between cost management and growth-oriented transformation.
Also read | Tech layoffs 2025: Over 61,000 jobs cut as Microsoft, Google, Amazon, and CrowdStrike reshape workforce
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