Wal-Mart to layoff nearly 800 employees Arkansas HQ; to build fewer new stores

Operational changes introduced for cost reduction at Wal-Mart Stores entail a layoff of at least 800 employees at the retailer's headquarters in Bentonville, northwestern Arkansas.

Informing the employees about the proposed job-cuts, Wal-Mart CEO Mike Duke wrote in a memo that the layoffs will come in the real estate, merchandising, marketing, and support divisions of the company's US division, as well as in Sam's Club retail division. The memo said that the store and club operations of the company will remain unaffected by the announced cuts.

Duke said that unprecedented times mark the beginning of the new fiscal year. He added: "While the number of associates that will be impacted by the restructuring is very small compared to the 2.2 million associates we have worldwide, I can assure you that we will treat them with care and dignity and help support them during their transition, consistent with our basic beliefs and respect for the individual."

According to Wal-Mart spokesman, David Tovar, quite a few positions are being relocated rather than being eliminated. As a part of the company's expansion plan in general, Wal-Mart intends generating new jobs in its stores and clubs divisions.

In addition to the announced layoffs, the world's biggest retailer also plans to build fewer new stores this year - 125 to 140 - in comparison to the last year's 166 new stores last year.