Walmart lays off 1,500 employees before peak season! Is e-commerce in crisis?

It is learned that on October 11, Walmart announced that it would lay off 1,458 employees at a distribution center in Fulton Parkway, Georgia, outside Atlanta, USA, by December 2. Walmart has not yet responded to the reason for the sudden layoffs before the peak season.

The pandemic-driven growth in e-commerce sales is slowing as consumers return to stores. It’s unclear whether Walmart’s announcement of layoffs ahead of its peak season is a sign that it is scaling back investment in its e-commerce business in response to lower demand, although some analysts believe it is.

Walmart spokesman Scott Pope said: "We are transforming the Fulton Parkway distribution center to support our growing WFS (Walmart Delivery Service) business." But did not respond to the reason for the layoffs.

Scott Pope added: "This distribution center transformation is part of Walmart's plan to build a high-tech focused warehouse to support its rapidly growing online business."

To replace the more than 1,000 employees that Walmart will lay off, the company announced it will acquire robotics and automation company AlertInnovation, which will help speed up deliveries and reduce the steps workers need to take when processing orders.

In May, Walmart signed a deal to deploy Symbotic’s end-to-end automation system across all 42 of its regional distribution centers, following its acquisition of an 11.1% stake in the AI ​​company.

Amazon has generated significant revenue for years by providing fulfillment services for third-party sellers, according to analyst Nick Egelanian. While Walmart appears to be following suit, it may not be as effective as Amazon.

Nick Egelanian also said that the more likely reason for Amazon and Walmart's move to reduce logistics is due to weak demand, which requires further reduction in capacity and cost savings.

Editor✎ Ashley/

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