In recent years, many large companies have chosen to embrace automated intelligence to help produce leaner, more efficient operations at the corporate level.
For the most part, this has mostly occurred in the technology sector at companies like Microsoft, as well as Google and Amazon. A total of about 61,000 technology sector jobs have been caught in the crossfire of layoffs in the wake of companies adopting AI.
But it’s not just tech companies, as retail businesses have entered the chat. Even the company known for the smiling faces of its door greeters has fallen to AI use.
That’s right—the company known for literal smiley faces as part of its branding in the early aughts has announced it will lay off 1,500 of its employees at the corporate level.
Most of these positions are concentrated in the Bentonville, Arkansas, and Hoboken, New Jersey hubs, as reported by FingerLakes1.com.
Why is Walmart laying off corporate staff?
According to reporting on the issue from FingerLakes, the Bentonville-headquartered company is choosing to restructure to “sharpen focus” and embrace automation.
The cuts were described by Walmart U.S. CEO John Furner and Global Chief Technology Officer Suresh Kumar in a joint letter to employees as necessary for building the “future of retail,” FingerLakes reports.
“We are eliminating roles as well as opening some new ones aligned with our business priorities and growth strategy,” the memo shared with employees reads.
How are other businesses embracing AI?
The use of automated intelligence in the retail space has become a hot-button issue for many retailers. Just as Walmart has made its intention to use AI in corporate roles public, Starbucks has elected to “go slow” on its rollout of AI and focus on higher staffing.
Notably, Amazon began using AI-powered audio product summaries to help shoppers learn more about other customers’ experiences.
On the customer-facing side of operations, Walmart is also reportedly preparing for shoppers to use AI to build grocery lists and potentially make purchasing decisions for them.
What’s next for Walmart?
As the company catches heat amid national conversations about tariffs, company officials have reportedly confirmed that the retailer will absorb some of the cost increase, as well as pass a portion of it to consumers.
Regarding layoffs, impacted employees will receive support in this transition, representatives of Walmart said, as reported by FingerLakes.
Despite the cuts, the company said it would likely be adding positions related to AI and “digital transformation.”
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