Whether you’re a Walmart employee or not, this information is of your interest. The company states that it is not able to absorb the impact of the tariffs imposed by Trump, which will result in a significant price increase for consumers. In addition, due to its growth and projection strategy, 1,500 layoffs have been carried out at the Arkansas headquarters technology department.
Where to start?
Walmart was founded in 1969 and has managed to become the largest retail company in the United States, and one of the largest worldwide. With headquarters not only on the American continent (around 4,600), but all over the world (specifically more that 5,500), Walmart has become an American symbol without a doubt.
It is one of the American companies that generates the most impact on the stock market, and has been placed in the Topped Fortune Global 500 list every year for a decade. In addition, it has an e-commerce service, which demonstrates that the company has been able to adapt to the needs of new types of purchases and customers.
The reason behind dismissals
It has been reported by Bloomberg on its website that the well-known american, giant, retail chain, Walmart, which employs more than 1.6 billion people, announced that that company is going through with a 1.5 layoffs.
This new doesn´t affect every head quarter and department, but only ones related to tech. Even though it was thought that it had something to do with the new implementation of the Republican President´s tariffs, it was declared by Nick DeMoss, Walmart’s global communication director, that the massive layoffs have nothing to do with the new tariffs, but with “business priorities and our growth strategy”.
What about tariffs?
After the harsh war of words between Trump and the biggest retail company in the United States, where the company held Trump responsible for the price increase that the company was forced to make, while he stood up for his measure and declared that the company was more than capable of dealing with the impact of tariffs -and that they used it as an excuse-, the next new related to Walmart was its inability to mitigate the impact of these tariffs without naming Trump. This would have a direct impact on their product´s prices, as they would be risen and, for sure, they would be noticed by the consumers.
John David Rainey, who stands as the Walmart´s chief financial officer, spoke to the CNBC news media last week and stated that “We’re wired for everyday low prices, but the magnitude of these increases is more than any retailer can absorb”. He also declared that the company is very worried about the impact on consumers because of this unstoppable price increase. The spokesman’s attitude is concerned about the situation and seeks to make consumers understand their position and their lack of responsibility towards it.
The prices rise
When are this increases going to be made? Rainey also added to the interview that it will begin to be substantially notable at the end of the month of May, but mainly in June. At least the company has considered to rise its products in a progressive way, so the consumer won´t notice it as a stoke.
What to expect?
In one way or another, it seems that Walmart is facing several open fronts. On one hand, the 1,500 layoffs that the company has only made in Arkansas´s tech headquarters. On the other hand, we are going to be able to see and suffer the increase of prices in every single product of this markets, According to the company, because of the new tariffs of Trump. We hope that the company can cope with the situation in the best possible way and we will be waiting for its latest updates.
