Key Takeaways
- Walmart shares move into focus Tuesday after a report the retailing giant plans to cut hundreds of corporate roles and requests most remote workers come back to offices.
- The retailer will also require staff working out of smaller offices in Dallas, Atlanta, and Toronto to relocate to the retailing giant’s other central locations, such as its headquarters in Bentonville, Ark., according to the report from The Wall Street Journal.
- Walmart shares may find support around $55.50 from both a horizontal line and the 200-day moving average, but could potentially move up to $64.50 projected by a measured move.
Shares in big box retailer Walmart (WMT) move into focus on Tuesday after The Wall Street Journal reported Monday evening that the company plans to cut hundreds of corporate roles and requests most remote workers return to offices.
The company, which is the country’s largest employer with thousands of corporate workers across the United States, will also require staff working out of smaller offices in Dallas, Atlanta, and Toronto to relocate to the retailing giant’s other central locations, such as its headquarters in Bentonville, Ark., as well as hubs in Hoboken, N.J., or Northern California, a person familiar with the matter told the Journal.
The company will still permit part-time remote work, providing employees spend most of their time in offices, the report added.
Efforts to Trim Headcount and Streamline Operations
The latest job reductions appear to form part of the retailer’s ongoing efforts to trim headcount and streamline operations.
In April last year, the company announced plans to slash more than 2,000 staff at its fulfilment centers and said it expects around 65% of its stores to be serviced by automation by the end of its 2026 fiscal year. Several months earlier, Walmart shuttered three of its tech hubs in Austin, Portland, and Carlsbad and told hundreds of staff they would need to relocate to central corporate hubs.
More recently, the retailing behemoth closed all of its 51 health clinics, abandoning its five-year push into the healthcare business, citing challenges from rising operating costs and a complex reimbursement environment. Investors will get a better read on the company’s outlook when it reports first-quarter earnings ahead of Thursday’s opening bell.
Monitor These Levels Amid Trading Range Breakout
Since climbing to a new record high in early March, Walmart shares have consolidated within a narrow three-point trading range, with the price remaining slightly above the 50-day moving average as investors contemplate the stock’s next move.
If the price breaks down below the range’s lower trendline, keep an eye on the $55.50 level, an area where the shares would likely find support from both a horizontal line and the 200-day moving average. Alternatively, if the price breaks above the range’s top trendline to a new all-time high (ATH), look for a potential measured move up to around $64.50. This is calculated by adding the trading range’s three-point move to the pattern’s breakout area at $61.50.
Walmart shares were up 0.2% at $60.52 about two hours before the opening bell.
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