Walmart plans layoffs at South Jersey e-commerce facility

In anticipation of a tougher year ahead, Walmart Inc. is laying off hundreds of employees at e-commerce fulfillment centers across the U.S., including 201 jobs in South Jersey.

According to a notice filed with the New Jersey Department of Labor and Workforce Development, the Bentonville, Ark.-based retail giant reported that the positions in Pedricktown will be eliminated, effective June 2.

A media representative from the company did not immediately respond to a request for further information; however, Reuters reported that Walmart is also cutting jobs at warehouses in Fort Worth, Texas; Chino, Calif.; Davenport, Fla.; and Bethlehem, Pa. The company, which employs 1.7 million workers – making it the nation’s largest private employer – told that outlet it is adjusting staffing levels in e-commerce supply chain operations “to better prepare for the future needs of customers.”

According to Walmart, the company is cutting back and eliminating night and weekend shifts at the impacted facilities; employees at those sites will be paid for 90 days. The company also said it will help place workers in jobs at other Walmart fulfillment centers in the U.S. or at one of the retailer’s 5,000 stores.

The move follows years of investment in automation technology as the company looks to streamline the process of filling e-commerce orders; however, Walmart declined to say if the layoffs were related to those efforts. A company spokesperson told Retail Dive, “Customer expectations are changing, and we are moving quickly to meet and exceed their needs. As demand grows, we are maximizing our network of stores and fulfillment centers, to deliver items for online customers, when and how they want them.”

After a pandemic-fueled spending boom, e-commerce sales continue to slow as most consumers have returned to shopping in stores and many pull back on discretionary spending amid high inflation and recession concerns, CNBC noted.

Walmart is the latest company to announce layoffs as retailers brace for roughly flat or declining sales this year. Amazon recently said it would cut 9,000 jobs, following 18,000 layoffs in January, while Target expects to trim $3 billion in total costs over the next three years.