SAN FRANCISCO: Sam's Club layoffs shocks Wal-Mart 11,200 affected employees. Despite trillion of stimuli US economy has yet not recovered. The Obama Administration has failed to generate enough jobs. And the economic signs are not healthy as some companies are still cutting jobs.
Retail giant Wal-Mart Stores Inc is the latest company to declare that it is planning to retrench some 11,200 jobs. Senior executives at its warehouse club division, Sam’s Club, have confirmed the news. In a move to save money, the company is going to outsource in-store product.
Sam's Club Chief Executive Officer Brian Cornell said: "We look at this as an investment in the in-club experience. This is not a cost-cutting move for us in the short term. We really hope it will be cost neutral for our operation. It's an investment in building loyalty, enhancing the member experience and driving future growth."
Cornell was appointed the CEO of the company on April 3, 2009 to boost sales. Besides, his job was also to swell membership ranks. He succeeded in achieving some target with his visionary plan but still fell short of achieving the target. It is too early to say the reaction of the locals who will be hit by this retrenchment. And it would be interesting to see how the Democrats face the situation.
