The intention of Walmart to slash 7,000 jobs was first reported Wednesday in the Wall Street Journal. The jobs to be cut will be accounting and invoicing jobs in the offices of individual stores and these jobs will become automated. Machines will be used to count money and invoicing will be done at the company’s central location in Arkansas.
The employees who lose their jobs will not be let go but rather offered other jobs that will be customer-related. CEO Douglas McMillion said the company wants to focus on better customer service by increasing the number of employees who work on the floor and have direct contact with customers.
While some of the new jobs offered to these employees may be higher-paid positions such as assistant managers, others may pay less that the workers’ current jobs. Many of those who work in Walmart offices are long time employees who earn more than those who work on the floor in sales and stocking shelves. Walmart intends to implement the automation of their stores in the coming months and the changeover is not expected to be completed until 2017.
A pilot project involving cuts to office jobs in 500 stores in the Western United States has been completed. The company was pleased with the transition although their spokesperson could not say how many employees were transferred to other positions and how many left the company. Walmart could also not say how many of the transferred employees ended up in lower-paying positions. Some new positions were with the company’s online food sales.
“Making Change at Walmart,” a group that fights for the rights of Walmart employees, is sceptical that any employees will be better off. Jess Levin, the group’s communications director, said most likely these 7,000 employees will be given the choice of a lower paying job or no job at all.
Walmart is making these changes because the company is facing stiff competition from online sales from companies such as Amazon. Job cuts have already been made and some stores have closed. As part of the changes being undertaken, wages have been increased in an attempt to increase employee morale.
As Yahoo News reports replacing jobs with automation is nothing new and is not restricted to Walmart. The major retailer’s announcement is part of what is referred to as the “Fourth Industrial Revolution.” It has been estimated that by 2020, about five million workers will be replaced by robots.
Walmart, the largest private employer in the United States, currently employees about 1.5 million people nationwide.
