Walmart has said that it will close twelve stores that aren’t doing well in nine states. This will put hundreds of people out of work. Washington, DC, Florida, Illinois, Hawaii, Indiana, Minnesota, Oregon, New Mexico, Wisconsin, and Washington state are among the states that are affected. Due to not making enough money, the company has been closing stores all over the country for a few years. The move is a bad sign for the US economy and job market, especially since more and more money is being put into automation and artificial intelligence (AI).
Walmart has more than 1.7 million employees, making it the largest private employer in the United States. The company has announced layoffs, and about 200 people in New Jersey, Texas, Florida, and Pennsylvania will lose their jobs because weekend shifts in non-retail e-commerce jobs will be cut or reduced. Those who are going to lose their jobs in the company’s e-commerce section can be moved to stores. But the closing of stores and loss of jobs show what could happen if more money is put into AI and automation.
Even though jobs are being lost, Walmart CEO Doug McMillon says the company is excited to put a lot of money into automation over the next year. Walmart has set aside $14 billion for the fiscal year 2022 to improve and automate its supply chain so it can compete with online giants like Amazon. McMillon said that Walmart wants to get rid of the idea that it’s not the best place to buy things online. In the first quarter of the company’s fiscal year 2022, its online market grew by 69%, and the company expects that growth to continue.
Then they wonder why Walmart is closing stores in blue states. Smdhpic.twitter.com/5oDuRFEKmK
— Myrna 💋💄 (@GigaBeers) March 27, 2023
Walmart is using AI more and more to predict what customers want. For example, it uses data from its grocery pickup service to learn when customers are likely to want a certain product and whether they want it delivered or picked up at a store. Representatives from the company said that the goal of adding more AI was to make sure that the supply chain worked better.
Walmart has shut down stores and let people go before. Due to not making enough money, the company has been closing stores all over the country. This is a worrying trend for the US economy and job market. Even though the affected workers can move to retail stores, more investments in automation and artificial intelligence (AI) could lead to more job loss in the future. But Walmart’s investments in automation and AI could also make supply chains more efficient and boost online sales, which would be good for the company and the US economy as a whole.
