Walmart Stock (WMT) Slips as Florida Migrant Jobs Could Go

Walmart (WMT) stock slipped today as it cut jobs in Florida following recent Supreme Court rulings on the legal residency rights of migrants.

Migrant Rights

It was reported in the U.S. press that retail giant Walmart had told employees in at least two stores in Florida that they would lose their jobs if they do not get new work authorizations. There is no indication how many staff might be affected.

It is understood that the job cuts are connected to I-9 forms that U.S. employers use to check the identity and employment authorization of staff.

Recent rulings from the U.S. Supreme Court ended legal protections for as many as half a million people from countries such as Cuba, Haiti, Nicaragua and Venezuela, who had been allowed to enter the country legally during the previous Biden administration.

That followed the high profile ruling which allowed the President Trump administration to end deportation protections for thousands of Venezuelans who had been under the Temporary Protected Status program.

Retail Pressure

These legal changes are expected to put pressure on retailers and other U.S. firms reliant on migrants to do roles which Americans don’t want to do.

Walt Disney (DIS) last week terminated the jobs of Florida-based employees who had temporary legal residency in the U.S.

Florida State Representative Anna Eskamani said: “We don’t have enough workers as it is, so this is a bad situation that’s getting worse.”

Walmart is already said to be considering cutting about 1,500 corporate roles in the U.S. as part of a restructuring strategy.  These layoffs are likely to affect teams in global technology, e-commerce fulfillment, and Walmart Connect, the company’s advertising arm.

Is WMT a Good Stock to Buy Now?

On TipRanks, WMT has a Strong Buy consensus based on 28 Buy and 2 Hold ratings. Its highest price target is $120. WMT stock’s consensus price target is $109.64 implying an 9.76% upside.

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