Retail giant Walmart (NYSE:WMT) is laying off over 2,000 staff from five of its e-commerce fulfillment centers located in the United States, Bloomberg reported.
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Delving deeper reveals that about 1,000 jobs at the Texas-based warehouse and 600 jobs at the Pennsylvania fulfillment center will both be eliminated. Moreover, the Florida and New Jersey centers will witness a reduction of 400 and 200 positions, respectively, with a further cut anticipated in California.
Since some of the impacted employees will be moved to other positions within the company, it is still unclear how this will actually affect Walmart’s headcount.
It is noteworthy that Walmart has avoided making significant layoffs, unlike other retailers, despite difficult macroeconomic conditions. Department store chain Nordstrom (JWN) announced plans to close its Canadian operations by the end of June and lay off about 2,500 workers.
Is Walmart a Good Stock to Buy?
Walmart, being a low-cost retailer and grocery supplier, is benefitting from elevated food prices. Also, the company is strengthening e-commerce services by redesigning its website and app.
According to Wall Street, WMT stock commands a Strong Buy consensus rating. This is based on 22 Buys and four Holds assigned in the past three months. The average price target of $163.74 implies 10.1% upside potential. The stock has gained 4% so far in 2023.
