Walmart is reportedly cutting jobs to lower costs
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The sheer scale of Walmart's U.S. business - $442 billion in net sales last year, following a surge since the pandemic - gives it more negotiating power with suppliers. Record memberships at Sam's Club and booming sales in India and China have also insulated it from recent weakness in the U.S. economy.
Walmart reported their fiscal Q1 ’26 earnings results last Thursday morning, May 15th, 2025 and while actual EPS beat consensus by 5%.
President Donald Trump's tariffs are widening the gap between market-leader Walmart and Target, the companies' latest quarterly reports show, underscoring missteps at the smaller U.S. retailer amid economic uncertainty.
Walmart said it would eliminate members of its global tech workforce in a memo sent to employees on Wednesday.
Walmart has significant China exposure -- about 60% of the manufactured products it sells -- but its reputation for "everyday low prices," economies of scale, and strength in groceries make it more resilient in a trade war or a down economy than most of its retail peers.
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A memo sent to employees and seen by Newsweek says the layoffs are intended to help the company streamline its operations.