The company that built its brand on helping customers “save money and live better” is making life harder for nearly 1,500 of its own employees. Walmart announced on May 21 that it’s eliminating corporate roles across its U.S. and global tech teams, part of a restructuring effort to “sharpen focus” and embrace automation.
The restructuring, which affects teams in Bentonville, Hoboken, and other key corporate hubs, is part of a broader effort to align the company with evolving retail and technology demands.
Why Walmart is making cuts
In a joint letter to employees, Walmart U.S. CEO John Furner and Global Chief Technology Officer Suresh Kumar framed the layoffs as essential for building the “future of retail.” The move, they said, will streamline decision-making and enable the company to adapt faster to industry changes.
“We are eliminating roles as well as opening some new ones aligned with our business priorities and growth strategy,” the memo stated.
The impacted divisions include Walmart’s Global Technology Team and Walmart U.S. operations, including its marketing unit, Walmart Connect.
The role of AI and automation
Industry analysts suggest these layoffs reflect Walmart’s increasing investment in automation and artificial intelligence. The company has spent over $500 million to implement robotic systems in more than 400 stores, and is expanding AI-driven tools for inventory management, ad campaigns, and supply chain operations.
“We trained these algorithms to do our jobs faster,” said one former employee affected by the layoffs. “Then, suddenly, those same jobs were gone.”
This echoes a growing trend among major retailers. Amazon, Google, and Microsoft have each reduced corporate headcounts in 2025 to increase automation efficiency and flatten organizational structures.
Impact on Bentonville and beyond
The job cuts have rattled the community in Bentonville, Walmart’s Arkansas headquarters. Several employees who had relocated for tech roles now face sudden unemployment.
“I believed in Walmart’s tech vision,” said Priya Patel, a recently laid-off employee. “Now I’m jobless in a town built around the company.”
The layoffs follow a Q1 2025 report showing Walmart’s revenue rose 2.5% year-over-year to $165.61 billion—slightly below expectations. Company insiders say the reorganization is intended to reignite growth in core areas, including Sam’s Club and in-store operations.
Layoffs follow tariff-related price concerns
The job cuts also come shortly after Walmart announced price increases due to tariffs imposed by the Trump Administration. While the company has pledged to absorb some costs, Treasury Secretary Scott Bessent confirmed the retailer would pass on some of the burden to consumers.
Former President Trump responded critically, saying Walmart should “eat the tariffs” rather than raise prices.
What happens next
Walmart said it is working closely with affected employees and will offer support during the transition. The company also hinted that more roles could be added in emerging areas tied to AI and digital transformation.
Still, the decision raises questions about the long-term future of white-collar roles in retail. As AI becomes more capable, companies like Walmart may continue reshaping their corporate structures to match a faster, leaner operational model.
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