Walmart, the world's largest retailer, plans to lay off more than 2,000 workers at distribution centers in Texas, Florida and Pennsylvania as part of layoffs anticipated by the retail giant throughout the United States as it responds to declining consumer demand and concerns about a potential recession.
The Bentonville, Arkansas-based chain, with more than 10,500 stores and clubs that employ 2.1 million workers worldwide, plans to lay off workers as it reduces or eliminates evening and weekend shifts in Fort Worth, Texas; Davenport, Florida; and Bethlehem, Pennsylvania.
Walmart told the Texas Workforce Commission the retailer plans to permanently lay off 1,047 employees at its distribution center at 5300 Westport Parkway in Fort Worth on June 2. Officials are encouraging workers to apply to open positions at other Walmart stores or Sam's Club stores, according to a Worker Adjustment and Retraining Notification letter Walmart sent to the state.
Walmart did not immediately respond to an interview request from CoStar News.
"In addition, we are providing associates with support options," General Manager Brandon Forcier said in the letter, adding options include access to the retailer's career portal, support services and severance pay.
Walmart has also filed WARN letters tied to distribution centers in Florida and Pennsylvania. In Florida, the retail giant plans to lay off 400 workers at 5100 N. Ridge Trail in Davenport. The layoffs are expected to go into effect on June 2.
In Pennsylvania, Walmart plans to lay off 597 workers at a nearly 1.2 million-square-foot distribution center at 3215 Commerce Center Drive in Bethlehem.
This latest round of distribution center layoffs comes months after the retailer cut nearly 1,500 jobs in Atlanta in December as it automates operations at the facility at 6055 South Fulton Parkway. Officials with the retailer also laid off another 510 employees spanning two Atlanta stores after fires that "caused extensive damage," to the buildings at 835 Martin Luther King Jr. Dr NW and 1801 Howell Mill Rd NW.
The retailer plans to utilize the Howell Mill Road site to open a Walmart Neighborhood Market in the future, officials told the state. It was unclear what would happen with what was once a 75,000-square-foot retail space on Martin Luther King Jr. Drive.
Walmart is the world's largest retailer based on a ranking by Deloitte Global Powers of Retailing 2023, which tracks the world's top retailers by revenue. The retailer's revenue in fiscal year 2021 grew by 2.4% to $573 billion, with higher consumer spending, in part due to government stimulus during that year, helping boost retail sales. During that same period, the retailer's international sales declined by double digits, according to the report.
The easing of pandemic restrictions has also impacted Walmart's e-commerce business, which has driven the activity at its distribution centers. In the report, John Furner, head of Walmart's U.S. operations, said, "We definitely saw a traffic shift back into stores from e-commerce."