Walmart is moving to an omnichannel business model

The Walton family still has a say on what happens in Walmart, as family members are on the Board of Directors and ultimately the CEO and his leadership report to the Board of Directors. Furthermore, the Walton family still owns a significant amount of stock and subsequently voting power.

The Board is well aware of the management team's vision, strategy, and operating priorities, as well as the company leadership's position on adapting the Walmart culture for the current business environment. The reality is that Walmart is attempting to adjust the ways of working from a tenure/relationship based environment to more of one based on performance and results.

Additionally, based on the analyst presentation yesterday, Walmart is clearly focused on ecommerce in the US as the plan is to only open 25 stores in the next year. That has implications for headcount investments in the brick & mortar areas of the business. In the CEO section of the presentation, there was a clear intent to demonstrate Walmart moving with speed to move to an omnichannel business model with a timeline of significant accomplishments.

This is a tough transition and a bitter pill to swallow for people who have invested a significant portion of their careers in the company. I certainly don't wish being laid off on anyone, and I wish the best of luck for everyone impacted in finding the next leg of their career journey.

Reposted from @PHlgdux-qfc, well said.

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What is par ranking? Are you referring to the calibration system for talent diamond (formerly the 9-box)?

The thing with nepotism goes down to the par ranking system. In our area the bosses rank the employees together. But if your boss doesn't like you, then you're screwed because they won't speak for you in those meetings. And I believe when they start Rif'ing people, they're picking those with the lowest par scores.

They need to come up with a way to take the objectivity out of the par scores. Unless they can do that, all the layoffs are doing is making nepotism worse, not better.

19% is just this year I think. I believe I heard 18% is next year's goal.

Could be wrong though.

Nepotism is huge problem at HO. Long tenured Sr. Directors banding together to keep as many people like themselves around as long as possible. Definitely a good ole boy (and girl) club to keep their Arkansas roots intact. If these people would worry less about the Jet and CA employees getting something they aren't, they might actually get some work done. Basically tired of being around people who think Walmart owes them a job for life; the whining is getting old .

Not surprised people are doubling down on nepotism, given the tendency for mean reversion. Old habits are hard to break, however, nepotism does not necessarily translate to strong business and financial performance. Furthermore, it can't save everyone from being displaced. WMT is still committed to 19% SG&A % of sales, and the productivity and sales growth need to arrive for that to happen.

The whole thing thing about the relationship/tenure bit you mentioned is amusing. In my area of merchandising, nepotism and the good ole boy system has gotten worse. So they are failing that intention badly.

Thread regarding Walmart layoffs

Walmart is moving to an omnichannel business model

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