Walmart To Cut Or Relocate 1,000 Employees Amid Major AI Team Shake-Up

US retail giant Walmart is set to cut or relocate nearly 1,000 corporate employees as the company reorganises its global technology and artificial intelligence product teams, according to a report by The Wall Street Journal. The move comes as Walmart sharpens its AI-focused digital transformation strategy under Chief Executive Officer (CEO) John Furner.

The retailer has increased spending on technology and artificial intelligence in recent years as competition grows with rivals including Amazon, Costco and Aldi. Walmart has also been working to strengthen its digital business and simplify operations across the company.

The report stated that Walmart’s head of global AI acceleration, Daniel Danker, and global technology chief Suresh Kumar reviewed the company’s internal structures before deciding to streamline overlapping teams. According to the report, some groups were working on similar problems, which prompted the restructuring effort.

Executives reportedly informed employees about the changes through an internal memo. Walmart said the move aimed to improve efficiency and align operations more effectively across technology and product divisions.

Why Is Walmart Restructuring?

Employees affected by the restructuring have reportedly been encouraged to apply for other jobs within Walmart. Several workers have also been asked to relocate to the company’s offices in Bentonville and Northern California as part of the move.

Walmart has steadily expanded its artificial intelligence operations over the past few years as it looks to compete more closely with Amazon. The company has been increasing the use of automation and technology tools across its retail business.

Last year, Walmart also launched AI-driven “super agents” designed to improve customer shopping experiences and operational efficiency after Danker joined the company.

What Prompted the Changes?

The report also noted that John Furner began the year with a cautious outlook regarding the condition of US consumers. Concerns around consumer spending and economic uncertainty continue to remain a challenge for large retailers.

Walmart has also been moving employees to its larger corporate offices in recent years. Earlier restructuring efforts included relocating workers to offices in Arkansas and California while reducing some corporate roles as part of cost-cutting and efficiency plans.