Walmart Inc. (WMT) plans to slash hundreds of jobs, setting the WMT on a bullish path. The retailer decided to lay off and join the list of service providers that announced lay-offs amid rising uncertainty in the U.S. economy. Inflationary pressures and a shift back to services are taking a bite out of sales of goods.
As per Reuters, the company slashed hundreds of jobs at five fulfillment centers including Pedrickton, New Jersey; Fort Worth, Texas; Chino, California; Davenport, Florida; and Bethlehem, Pennsylvania. After Walmart projected slower sales growth and lower profits in the coming fiscal year, it decided to strategically lay-off some of its workforce.
Walmart Enters Makes the List of Co.s Laying off Employees
Reducing workforce has been the trend over the past two years. A Walmart spokesperson said the lay-offs were necessary as the company plans to omit evening and weekend shifts at the targeted facilities. Affected employees will be paid for 90 days as Walmart tries to provide them jobs at other locations.
The retail giant joined several other firms that laid off part of its workforce in the last few days due amid deteriorating economic outlook and a year-long surge in interest rates. Amazon, Neiman Marcus and Lidl are other retailers that cut jobs to deal with the economic slowdown. Amazon, Walmart’s rival, disclosed plans to cut another 9,000 jobs just weeks after the company had laid-off about 18,000 employees.
WMT Stock Price Action
WMT stock price broke the regression channel, forming a bullish uptrend. The uptrend shows buyers gaining dominance. The price retraces taking support at $139.50 and rises, trying to breach the third level of Fib retracement. The current WMT stock price of $141.80 can face resistance near $145.00 under present bullish momentum. If price cracks out of the fifth level, a rally reaching $148.33 can be established.
The RSI shoots up to the upper half zone indicating increasing strength in the buyers’ grip. The MACD forms a positive crossover and records ascending buyer bars.
Conclusion
With Walmart laying off hundreds of employees, it aims to reduce costs and prepare for protracted inflationary pressure. Amid mass lay-offs, Walmart picked out five of its fulfillment centers where it will reduce its workforce and omit evening and weekend shifts. WMT stock price turned bullish after the announcement of the strategic decision. The holders can rely on the support near $139.50 and trace the rally.
Technical levels
Support levels: $139.50 and $136.10
Resistance levels: $145.00 and $148.33
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/03/25/wmt-stock-invites-the-bulls-as-walmart-slashes-workforce/