Walmart Stock Falls After Report of Hundreds of Layoffs

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Walmart

is eliminating about 200 jobs in a bid to restructure the company, according to a report from The Wall Street Journal that cited people familiar with the matter. Shares of the retail behemoth headed lower.

In late July, Walmart issued a warning that its profit would come in lower than previously expected.

The roles being cut are corporate, and are across many departments, the Journal report said. A spokesperson for the company confirmed the cuts and said Walmart (ticker: WMT) was creating new roles as well.

Walmart stock was down 0.6% to $129.75 in late trading Wednesday.

Shares fell during the regular session before the report surfaced. That was despite a positive day for the broader market and other retailers, including Target (TGT). It was the first time that Walmart stock closed lower since July 26, the first trading day after it lowered its full-year outlook.

A number of retailers have curbed their outlooks recently, citing shifting consumer priorities and the need to discount merchandise. Walmart has had to aggressively promote categories like clothing and home goods that shoppers stopped buying in recent months, leading it to predict lower profits this year, even as sales increase.

Faced with high inflation, many Americans have prioritized services over goods they stocked up on during the pandemic, while also having to devote more of their budgets to essentials like food and fuel. That has left many retailers struggling with bloated inventories.

Walmart is down about 10% in 2022, compared with a 13.4% decline for the

S&P 500.

Write to Teresa Rivas at [email protected]