Walmart (WMT) stock slipped 1.4% on Wednesday, dragged down by a mix of market-wide weakness and internal changes. The retail giant plans to cut about 1,500 corporate roles in the U.S. as part of a broader restructuring strategy, according to the Wall Street Journal. The layoffs will affect teams in global technology, e-commerce fulfillment, and Walmart Connect, the company’s advertising arm.
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This move is part of Walmart’s effort to cut expenses and make faster decisions across the company. At the same time, the retailer said it plans to open some new roles, indicating that this is not a broad downsizing, but a more targeted shift aimed at boosting efficiency and focusing on key priorities.
Other retailers are also in cost-cutting mode. Macy’s (M), Wayfair (W), Amazon (AMZN), and Levi Strauss (LEVI) have all announced layoffs earlier this year to control expenses, adjust to changing consumer habits, and tackle global supply challenges. Just last week, Walmart warned it would hike prices on many products starting in late May due to tariff-driven costs and supply chain disruptions. This move shows how tough it is for retailers like Walmart to keep costs down while dealing with macro pressures.
Earnings Stay Strong amid Uncertainty
Walmart’s restructuring news came shortly after it delivered solid results for Q1 FY26. Revenue rose 2.5% year-over-year to $165.6 billion, slightly below Wall Street’s $166.02 billion estimate. Adjusted earnings per share came in at $0.58, surpassing the $0.58 estimate.
A standout in the report was e-commerce. Walmart posted its first-ever profitable quarter for online operations across both U.S. and international markets. Online sales soared, up 21% domestically and 22% globally, marking 12 straight quarters of double-digit growth.
Cautious Outlook Despite Momentum
Despite the strong performance, Walmart remains conservative in its outlook. It expects Q2 sales to grow between 3.5% and 4.5%. For the full fiscal year, the company maintained its forecast for 3% to 4% net sales growth.
Executives pointed to uncertain consumer behavior and a tough economy as reasons for the cautious outlook. While Walmart is still spending on automation, online growth, and pay raises for store workers, the corporate job cuts show it also wants to stay lean and ready for changes in the retail world.
Is WMT a Good Stock to Buy Now?
Overall, Wall Street analysts have a Strong Buy consensus rating on Walmart stock based on 28 Buys and two Holds assigned in the past three months. The average WMT price target of $109.31 per share implies a 13.36% upside potential.
