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.
