With pressure from investors mounting amid sagging share prices, Wal-Mart has been taking measures to reduce its costs and raise profits. The latest move has the retailer reportedly planning hundreds of job cuts at its Bentonville, Ark., headquarters starting as early as next week. The nature of all the jobs could not be learned, but is said to include senior manager positions. The retail giant has about 19,000 employees at its headquarters.
Other efforts to cut costs have included charging suppliers for shelf space at its warehouses and negotiating with vendors to try and get lower prices in light of the falling Chinese yuan. Suppliers are realizing savings due to the dollar’s favorable exchange rate against the yuan and Wal-Mart wants a share of the savings on manufacturing in China.
Wal-Mart’s stock has declined 24 percent this year. It was down .02 percent to 64.83 percent on the New York Stock Exchange today in early trading.
Wal-Mart’s woes are many, including lackluster momentum in its U.S. Business and uneven results in its international division. At the same time, the retailer has invested in technology and raised the wages of sales associates in April to $9 an hour, which has weighed on earnings.