Retail giant Walmart (WMT) is being accused of over-stretching its staff after a swath of job cuts around the country.
Don’t Miss TipRanks’ Half-Year Sale
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Double-Digit Losses
According to a report in the Men’s Journal, Walmart workers are taking to social media to complain that their coworkers have disappeared from shift schedules overnight. It is not just the odd one or two either, they claim that the vanished are often in double-digit numbers.
The job cuts reportedly stem from Walmart making changes to immigration work authorizations as the Trump administration clamps down on illegal workers.
One Reddit user claimed their location lost 10 employees as a result of work visa issues. Another reported 40 departures at a 400-person store, forcing older workers and managers to stretch themselves thin just to keep shelves stocked.
“Most of our older floor associates are constantly asking for help,” one employee wrote. “It’s not really ideal.”
Migrant Workers
It comes as Walmart makes changes to its policies to comply with a Supreme Court ruling in May that ended a temporary work program, which shielded over half a million migrants from deportation and granted legal work authorization.
Companies are responsible for removing unauthorized employees, even if their status was revoked suddenly.
“Employers like Walmart have no choice but to stop employing workers who lack US work authorization,” immigration attorney Loren Locke was quoted in the piece. “But it is tricky to comply when they have a large number of current employees whose work permits are getting cancelled prematurely.”
The impact of over-stretched workers and locations with a lack of staff is clear for Walmart. That could lead to errors and a drop in customer service at an important time when retailers are competing for every customer dollar.
Is WMT a Good Stock to Buy Now?
On TipRanks, WMT has a Strong Buy consensus based on 28 Buy and 1 Hold ratings. Its highest price target is $120. WMT stock’s consensus price target is $110.07 implying a 12.79% upside.
