SURPRISE! WALMART CUTS WORKER HOURS…

Well, not really, I think everyone knew that this shoe would drop, sooner or later as Walmart's Wall Street masters expressed royal displeasure with stock performance. The question now is: will Walmart freeze or abandon completely, future raises announced earlier this year? Writing in Wal-Mart Cuts Some Workers’ Hours After Pay Raise Boosts Costs for Bloomberg News, Shannon Pettypiece reports:
Wal-Mart Stores Inc., in the midst of spending $1 billion to raise employees’ wages and give them extra training, has been cutting the number of hours some of them work in a bid to keep costs in check. Regional executives told store managers at the retailer’s annual holiday planning meeting this month to rein in expenses by cutting worker hours they’ve added beyond those allocated to them based on sales projections. The request has resulted in some stores trimming hours from their schedules, asking employees to leave shifts early or telling them to take longer lunches, according to more than three dozen employees from around the U.S. The reductions started in the past several weeks, even as many stores enter the busy back-to-school shopping period. Chief Executive Officer Doug McMillon is trying to balance a desire to improve service -- partly through increased spending on his workforce---against investors’ pressure to keep profit growing. Labor costs, which rose after Wal-Mart increased its minimum wage to $9 an hour in April, have weighed on earnings, which missed analysts’ expectations last quarter. At the same time, Wal-Mart is trying to maintain low prices to fend off rivals
I'm actually a little sad to reflect that I think Doug McMillon will become the shortest-termed CEO for Walmart as outside forces demand a return to past levels of dividends, and damn the consequences.

Leave a Reply

*
To prove you're a person (not a spam script), type the security word shown in the picture. Click on the picture to hear an audio file of the word.
Anti-spam image