Wal-Mart recently cut 450 jobs at its headquarters in Arkansas, hoping to reorganize their management structure. According to the Chief Executive Doug McMillion, they want a “more nimble organization” and they are “pulling back in some areas and investing in others”.

 

 

My analysis shows that Wal-Mart lost a quarter of its value in stock. Wal-Mart wants to shift their plan to adapt to customer demand, so they laid people off for the extra funds instead of having to pay the legacy cost and their wages. I agree with Wal-Mart’s decision because the world is changing everyday, and they need to constantly update their strategic plan to keep up with the constant changing behaviour of customers. They need to invest in appropriate funds that will benefit their company and keep up with their competition. I also agree with Rita McGrath‘s belief that Wal-Mart should build and exploit many transient competitive advantages at once, in order to stay ahead. Although I think what Wal-Mart did will benefit their company, I don’t think it is good for the workers, since they are leaving so many people unemployed. Any layoffs will disturb the consumer-goods companies, especially a layoff this big. Overall, Wal-Mart is trying to have more funds and constantly change their strategic plan to keep up with the ever-changing world, and I see nothing wrong with their plan to change.

 

Work Cited

“Walmart CEO Tells Staff 450 Job Cuts Aim to Make Are to Become More.” Fortune Walmart CEO Tells Staff 450 Job Cuts Aim to Make Are to Become More Nimble Retailer Comments. N.p., 02 Oct. 2015. Web. 02 Oct. 2015.

 

“Wal-Mart Preparing to Cut Hundreds of Headquarters Jobs This Week.” WSJ. N.p., n.d. Web. 02 Oct. 2015.

 

“Wal-Mart to Cut Hundreds of Jobs at Headquarters: Sources.” The Globe and Mail. N.p., n.d. Web. 02 Oct. 2015.

 

“Wal-Mart Stores, Inc.” : NYSE:WMT Quotes & News – Google Finance. N.p., n.d. Web. 02 Oct. 2015.

 

“Wal-Mart to Cut 450 Jobs at Headquarters.” CNBC. N.p., 02 Oct. 2015. Web. 02 Oct. 2015.