Walmart is laying off hundreds of corporate workers across the country as it relocates many employees to its Arkansas headquarters.

The big-box retailer confirmed the layoffs and relocations in a memo sent to employees Tuesday. Chief People Officer Donna Morris stated that the move aims to bring more employees back to the office after the COVID-19 pandemic. The company brought corporate employees back to its Bentonville, Arkansas, headquarters in February 2022.

Now, Walmart is taking that a step further. The majority of employees working remotely and in offices in Dallas, Atlanta, and Toronto have been asked to relocate. Most will move to the company’s Arkansas headquarters, but some will also relocate to offices in the San Francisco Bay Area or Hoboken, New Jersey.

“In addition, some parts of our business have made changes that will result in a reduction of several hundred campus roles,” Morris said in the memo. “While the overall numbers are small in percentage, we are focused on supporting each of our associates affected by these changes.”

Walmart did not specify the number of people affected by the cuts. The news comes days before Walmart’s much-anticipated earnings report on Thursday.

The layoffs are the latest cost-cutting measure for the retail giant. In late April, Walmart announced it would shutter 51 health clinics across Arkansas, Florida, Georgia, Illinois, and Texas. These clinics, part of Walmart Health, offered doctor, dentist, and therapy appointments. Despite their potential, Walmart deemed the business financially unsustainable and decided to close them.

Walmart is the nation’s largest private employer, with about 1.6 million employees, most of whom work at its stores across the country.

Strategic Relocation to Bentonville

Walmart has another reason to bring more employees to Bentonville: It is building a nearly 350-acre campus there. The major development, which is well underway, includes 12 office buildings, parking lots, a hotel, and other amenities. The campus’s first few buildings have already opened, including a fitness center and a daycare. This new campus aims to foster collaboration, innovation, and a stronger company culture.

Employee Impact and Support

Walmart emphasizes its commitment to supporting affected employees. "We have had discussions with associates who were directly impacted by these decisions. We will work closely with them in the coming days and months to navigate the best path forward," Morris assured.

Financial Context

Walmart’s decision to cut costs and streamline operations comes amid financial challenges. The company's shares have dropped 45% since July 2023, and in February, it announced plans to lay off 350 employees. These moves reflect Walmart's broader strategy to maintain financial health while adapting to changing market conditions.

Full Memo from Donna Morris

"It has been a little over four years since we faced the global pandemic that reshaped our lives in many ways, including our ways of working. In February 2022, we made the decision to bring Home Office associates back into our campus offices. We believe that being together, in person, makes us better and helps us to collaborate, innovate and move even faster. We also believe it helps strengthen our culture as well as grow and develop our associates.

With the goal of bringing more of us together more often, we are asking the majority of associates working remotely, and the majority of associates within our offices in Dallas, Atlanta, and our Toronto Global Tech office, to relocate. Most relocations will be to our Home Office in Bentonville, but some will be to our offices in the San Francisco Bay Area or Hoboken/New York.

In addition, some parts of our business have made changes that will result in a reduction of several hundred campus roles. While the overall numbers are small in percentage, we are focused on supporting each of our associates affected by these changes.

We have had discussions with associates who were directly impacted by these decisions. We will work closely with them in the coming days and months to navigate the best path forward."

The Wall Street Journal first reported the layoffs and relocations, highlighting Walmart's ongoing efforts to adapt and streamline its operations in a challenging economic environment.