Walmart is removing about 3,500 store co-managers, and adding about 1,700 assistant store managers, a slightly lower-paid role.
According to reports, this massive shift was intended to root out poor performers and create clearer paths to leadership, to make Wal-Mart more efficient.
The managers whose jobs are cut will be able to apply for other positions. Walmart is raising its wages to $11 an hour and dole out $400 million in one-time bonuses to its employees.
Walmart also announced Thursday that it would close 63 Sam’s Club stores in a move that would impact roughly 9,400 employees.
A Walmart spokesman said in a statement, “retail is changing rapidly, and we are transforming to meet the needs of our customers, to help compete and win in this environment, we must make changes across our company to enable further investments in our strategic business priorities and growth.”
Per sources, Walmart made calculated strategies that smaller stores under $80 million in annual sales won’t have any co-managers; mid-sized locations between $80 million and $90 million will have one; stores from $90 million to $125 million will have two; and the highest-volume locations will have three.