​Sam’s Club Announce Management Layoffs At Stores​​

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January 26, 2021

Sam’s Club announces 2,300 layoffs in stores nationwide on Jan. 24, most of which are assistance management positions. A large number of layoffs are at stores with weak sales, according to Walmart, and most employees already got their notices on Friday.

Employees were informed by Walmart that there will be 2,300 layoffs at Sam's Club stores

The layoffs, which cut 2 percent of the membership club’s employees of about 116,000, mark the largest since 2010 when the Sam’s Club unit laid off 10,000 workers as it moved to outsource food demonstrations at its stores.

Bill Durling, a spokesman at Sam’s Club, says that a little less than half of the cuts were aimed at salaried assistant managers. It is also eliminating some hourly workers.

The layoffs come amid an effort to compete with rival Costco and online competition like Amazon, which has its own club-like service called Amazon Prime. Assistant managers will comprise nearly half the layoffs as the unit looks to slim down its managerial staff.

Sam’s Club joins a a growing list of major retailers announcing job cuts this year. JC Penney said last week it will close 33 stores and cut 2,000 employees, and Macy’s announced earlier in the month that it would layoff 2,500 workers. Target is also laying off 475 workers and has eliminated 700 vacant positions over the last six months.

“We have plans for further growth in San Antonio,” Stephen Chadwick, market manager for Sam’s Club in San Antonio and South Texas, told the Business Journal. “We are going to put more stores here.”

Meanwhile, in the last year, Walmart built four new Supercenters in San Antonio. The company also recently opened two new stores earlier this month and also is planning on opening three additional stores in San Antonio between now and 2015.

Sam’s Club on its own is the eighth largest retailer in the country.