Walmart (NYSE:WMT) is planning to shut down three of its U.S. technology hubs, located in Austin, Carlsbad, and Portland, as per a WSJ report. Also, the big box retailer wants the affected workers to relocate to other offices in order to keep their jobs.
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Walmart plans to cover the cost of relocating employees to other main offices. The company also intends to give severance pay to workers who decide to exit their position.
In other news, Walmart has asked its tech employees to be present for at least two days a week in the office. However, some employees are still permitted to work remotely.
The move to scale back its footprint comes within a year of the company’s expansion announcement. Last year, Global Chief Technology Officer Suresh Kumar revealed plans to open two tech hubs in Atlanta and Toronto, along with the hiring of about 5,000 staff.
What is the Prediction for Walmart Stock?
Walmart has a Strong Buy consensus rating based on 25 Buys and five Holds assigned in the past three months. The average WMT stock price target of $162.17 implies 11.1% upside potential.
