Wal-Mart Stores, Inc. (NYSE: WMT) has announced that it will cut about 7,000 jobs over the next few months. These will be back office store jobs, and the cuts are expected to take place in all its stores. The goal of the largest employer in the United States is to shift positions from the back rooms and into the selling floors. This is a response to a treat from competitors like online retailers and Amazon (NASDAQ: AMZN) in particular.
Wal-Mart has invested $2.7 billion in its employees, raising salaries in order to keep them motivated as jobs responsibilities have become more complex than ever before due to new technologies. Walmart employs approximately 1.4 million people in the U.S.
To fight competitors which have an edge with sophisticated online platforms, Wal-Mart has invested billions of dollars to improve digital offerings and online outreach. The company did manage to improve its online presence and sales last quarter, as the company’s mobile app, and expansion of the free grocery pickup service showed strength.