Online job cuts at Walmart's e-commerce division top 3,000
Walmart Announces Layoffs at Distribution Centers Across the U.S.
In a move that may impact local economies in several states, Walmart has announced layoffs at its distribution centers nationwide. The layoffs, which have occurred in the past few weeks, are primarily due to the retail giant's increased adoption of advanced robotics and AI automation in its supply chain operations.
The layoffs affect a total of 3,267 workers, including 953 at Walmart's distribution center in Chino, California. The company has been retrofitting over half of its distribution centers with automated systems such as AI-powered defect detection, robotic pallet building, and optimized load planning. These automation efforts have led to a 30% reduction in fulfillment costs compared to manual operations, enabling Walmart to fulfil orders faster with fewer labor hours.
The automation shift is not limited to the Chino distribution center. Walmart is also expanding robotic micro-fulfillment centers within stores to process a large portion of online grocery volume, further decreasing labor reliance in order picking and fulfillment.
While the specific reasons for the layoffs at these facilities are not specified, the shift towards automation is a likely factor. It's worth noting that this strategic shift allows Walmart to compete more effectively with rivals like Amazon by dramatically improving fulfillment speed, scale, and cost competitiveness, even as it invests in employee benefits elsewhere.
Walmart, however, did not immediately return a request for comment regarding the layoffs. The company's silence on the matter has left many workers and local communities wondering about the future of their jobs and the local economy.
For now, it remains unclear whether the layoffs are permanent or temporary. Walmart has not specified whether the layoffs are related to the company's increased reliance on automation exclusively or if other factors are at play.
[1] Automation in Walmart's Fulfillment Network [2] Walmart's Robotics Strategy [3] Walmart's Competitive Advantage through Automation
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