Sam’s Club closures could cost 11K jobs
Walmart’s Sam’s Club could cut more than 11,000 jobs as part of a round of store closures.
The membership warehouse said Thursday that it will shutter about 50 stores and convert an additional 13 into online distribution centers.
There are about 175 employees per location, which would translate into about 11,025 people affected by the move.
Walmart spokesman Blake Jackson declined to provide a specific figure for the number of people who will be laid off.
“Our goal is to place as many of the impacted associates as possible at other Sam’s Clubs or Walmart stores,” he said in an email.
Walmart, the nation’s largest private employer, said it would record a 14-cent-per-share charge to its earnings as a result of the changes.
The cuts affected about 10% of Sam’s Club locations.
There will be 597 Sam’s Club stores remaining when the closures are complete.
The company attributed the decision to the need to better fulfill online orders, less population growth than expected in some markets and too many competing locations.
Sam’s has trailed rival warehouse Costco in sales growth.
Sam’s Club is trimming down locations to 597 stores.