Walmart Lays Off Fulfillment Center Workers as Sales Slow and Robots Go to Work

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by Samuel Pordengerg Mar 25, 2023 News
Walmart Lays Off Fulfillment Center Workers as Sales Slow and Robots Go to Work
Automation Layoffs Robots Walmart

Mar 24, 2020.

Hundreds of employees are being laid off at Walmart's fulfillment centers.

The retailer has given notice to about 200 workers at its facility in Pedricktown, NJ, and is cutting back on personnel in other places.

The workers have been told to find jobs at other FCs within 90 days, according to a report.

The job cuts were made to better prepare for the future needs of customers, according to a Walmart spokesman.

Walmart expects sales to slow in the second half of the year as consumers continue to limit spending on discretionary purchases due to inflation and economic uncertainty

There is still a lot of uncertainty with regards to the economy. The savings rate is half of what it was at a pre-pandemic level, and balance sheets are getting thinner as the Fed raises rates.

Walmart's automation of its fulfillment capabilities appears to be the reason for the layoffs. A plan to move goods faster and at a lower cost has led to the opening of highly automated FCs. The successful implementation of technology at Pedricktown has led to the implementation of technology in other facilities.

The high-tech FCs feature automated, high-density storage systems that streamline a manual, twelve-step process into five robotic-driven steps. Warehouse workers don't have to walk up to nine miles a day to find product in the picking process.

Walmart will be able to offer next- or two-day shipping to 95 percent of the US population by combining its FCs and traditional centers.

Walmart's rivals are looking to cut costs.

In the first two months of the year, Amazon.com laid off thousands of employees. Target has not said where the savings will come from.

Do you think layoffs at Walmart FCs are driven more by declining sales or by automation?

Please practice The RetailWire Golden Rule when submitting your comments. Braintrust

Retailers should invest in their people instead of laying off workers.

The use of automation will continue in fulfillment centers and warehouses.

We are talking about e- commerce fulfillment. People are heading back to the store. That's the truth.

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