Walmart Cutting 2,300 Sam’s Club Jobs

sam's club walmart

NEW YORK (TheStreet) – Wal-Mart (WMT) plans to eliminate 2,300 Sam’s Club workers, or 2% of subsidiary’s workforce, a Sam’s Club spokesman confirmed on Friday.

The Sam’s Club layoffs, the biggest since 2010, are an effort to reduce salaried assistant managers and hourly employees at underperforming stores, the Wall Street Journal first reported on Friday.

Sam’s Club has the same amount of associates and management in all of its stores, whether it had $50 million or $100 million in revenue.

Sam’s Club CEO Roslaind Brewer told the Journal the job cuts will “align the number of assistant managers to the sales of the club and to where our growth areas are.”

Brewer is looking to double revenue, and turn Sam’s Club into a $100 billion business in order to better compete with Costco Wholesale (COST). For the 2013 fiscal year, the members-only warehouse club had 630 stores, employing 116,000 workers, with revenue of $56 billion.

Read more on the layoffs.

2 comments

  • Betsy Jusola

    If you want to compete with Cosco pay your employee’s the same salaries as Cosco and make your employee’s happy like the owner of Cosco. You should be hiring not firing employee’s now the underpaid and overworked employee’s will be more disgruntled. I wish everyone would quit buying at Sam’s and Walmart.

  • Sarah 1

    The key paragraph “The Sam’s Club layoffs, the biggest since 2010, are an effort to reduce salaried assistant managers and hourly employees at underperforming stores” is exactly what is happening to hourly employees. Psssst. Then they can draw food stamps?
    If you shop at WalMart or SAM’s, I do understand the money aspect but why would you give your hard-earned dollars to a multi-billion dollar company that does not treat it’s employees well?
    I refuse to help them become richer than they already are at this time.

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