Walmart Layoff: Understanding the Severance Rights

Walmart Layoff: Understanding the Severance Rights

What is the reason for Walmart Layoff?

Walmart, the renowned US multinational retail giant, is currently undergoing significant organizational changes, with reports indicating the elimination of numerous corporate positions and a shift in remote work policies. According to sources cited by the Wall Street Journal, Walmart is streamlining its corporate structure by cutting hundreds of jobs while also urging remote workers to transition to office-based roles.

Why is Walmart Relocating Employees to Central Hubs?

This transition involves relocating employees from smaller satellite offices in cities such as Dallas, Atlanta, and Toronto to centralized hubs. The move is aimed at fostering closer collaboration among team members and enhancing operational efficiency. While employees will have the flexibility to work remotely part-time, the company emphasizes the importance of being physically present in offices for the majority of their work time.

What Prompted Walmart’s Shift?

These changes come as Walmart continues its efforts to evolve with changing market dynamics and technological advancements. Last year, the company announced its intention to automate a significant portion of its store operations, with a target of having 65% of its stores serviced by automation by the end of fiscal year 2026. This strategic shift towards automation reflects Walmart’s commitment to enhancing customer experience and optimizing operational processes.

In addition to restructuring its corporate workforce, Walmart has also made significant adjustments to its technology operations, including staffing. In February 2023, the company closed three of its US-based technology hubs, leading to the relocation of hundreds of employees. This decision was part of Walmart’s broader strategy to centralize its technology functions and streamline operations.

Severance pay for Canadian Walmart employees

In Canada, non-unionized employees of Walmart who face job loss due to downsizing or corporate restructuring are entitled to receive their complete severance pay. This severance package, which can extend up to 24 months of pay, is contingent upon various factors. In Ontario, significant layoffs involving 50 or more individuals may result in enhanced severance entitlements. Employees who feel they haven’t received their full severance amount have the option to pursue compensation, and it’s recommended to seek legal advice to ensure fair treatment.

At Whitten & Lublin, our team of experienced employment lawyers is committed to assisting individuals in understanding their legal options to obtain rightful compensation. If you’ve been impacted by recent layoffs in Canada, don’t hesitate to reach out to us for a consultation. You can connect with us through our online portal or by calling (416) 640-2667.