Sam’s Club cutting 2% of its workforce

From Wall Street Cheat Sheet:

According to reports, the 2,300 job cuts will affect salaried assistant managers as well as salaried employees at the six hundred Sam’s Club locations in the U.S. A spokesman for Sam’s Club said many of the cuts will come in the stores’ fresh foods section, where managerial presence will be trimmed in half, CNN Money reports. The managers will take on more responsibilities and receive higher salaries in return.

This is odd news for a company that has been struggling with the harmful effects of understaffing, especially in the produce department.

Moreover, Walmart tries to justify the low wages it pays by making a lot of hay of its supposed opportunities for career growth and advancement into management positions. Internal company documents about limits on associate advancement make those claims rather dubious, and the fact that Walmart is now cutting mid-level management positions makes them even more dubious. For those who haven’t lost their jobs in this round of layoffs, there are fewer mid-level management positions available for associates to supposedly advance into on their way up the career ladder.

 

What do you think?