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2,500 Employees Out At Wal-Mart's Sam's Club; Retailer Strives For Economic Efficiency

Jan 25, 2014 10:35 AM EST | By Justin Stock
Wal-mart, Sam's Club, employees, Cuts, Layoffs
Sam's Club
Over 2,500 employees are out at Wal-Mart's Sam's Club division as the company becomes more economically efficient.(Photo : Creative Commons)

Over 2,000 employees are out at Wal-Mart's Sam's Club division as the company becomes more economically efficient The Wall Street Journal reported Friday.

"We're always looking at how to be more efficient and effective," Bill Durling, head of corporate communications at Sam's Club told Bloomberg.  "We're doing this so we can position ourselves for future growth," Durling told Bloomberg.

The layoffs include assistant managers, and hourly employees like phone attendants Bloomberg reported.

"Over the years, we've migrated to a top-heavy structure in our management," Rosalind Brewer Chief Executive at Sam's Club told The Journal. "What this does is align the number of assistant managers to the sales of the club and to where our growth areas are," Brewer told The Journal.

Sam's Club will have 20 more locations in 2015 The Journal reported. Company  membership fees went up in 2013 The Journal reported. Fees last went up in 2006. 

The retailer is now connecting employee bonuses to customers who sign-up for Sam's Club rewards program The Journal reported.

The changes amount to two percent of 116,000 total employees throughout the United States The Journal reported. Wal-Mart's warehouse equals 12 percent of the retailer's sales. The department recorded $56.4 billion in sales in 620 stores in 2013.Affected workers are getting the remainder of their salaries for the next two months until they find the next landing within the retailer The Journal reported. Severance packages will be available for workers still out of work come March.Sam's Club last made shifts in 2007 by combining 3,000 manager posts, and scraping managers in the bakery, and meat departments The Journal reported.

Macy's is retaining $100 million each year after it cuts also 2,500 positions Proactive Investors reported 

Additional associates will be moved from within the company, or provided with more responsibilities The Chicago Tribune reported.

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