26 Jan 2010

Wal-Mart to cut 11,200 jobs

6:03 am on 26 January 2010

Wal-Mart is cutting 11,200 jobs at its Sam's Club retail warehouse chain in the United States.

The majority of the cuts will hit staff running in-store promotions at the chain, after Wal-Mart decided to outsource these functions.

Last November, chief executive Mike Duke said that the trading environment for the whole group continued to be "difficult".

Sam's Club employs about 110,000 people across 600 stores.

In-store promotions and product sampling will now be outsourced to Shopper Events, a marketing company, in an attempt to win more customers and boost flagging sales.

Staff were told the news at meetings on Sunday morning.

Club revenues down

The BBC reports revenue at Sam's slipped nearly 1% to $US11.55 billion in the last quarter, while Wal-Mart stores reported a 1.2% sales increase to $US61.81 billion.

Earlier this month, Wal-Mart Stores closed 10 underperforming Sam's Club locations, with 1,500 job losses.

Sam's chief executive Brian Cornell said Shopper Events plans to hire "roughly the same number of people" being cut and Sam's workers were invited to apply for those positions.