Retail Giant Walmart Undertakes Major Restructuring, Up to 1,000 Headquarters Employees at Risk of Layoffs
Jakarta, CNBC Indonesia - The US retail giant Walmart is reportedly planning to cut or relocate around 1,000 headquarters employees. This step is part of a major restructuring to strengthen its technology and artificial intelligence (AI) business. A report from The Wall Street Journal (WSJ) on Tuesday local time stated that this action is in line with the company’s efforts to integrate more global technology and AI product teams. The goal is to make the company’s operations more efficient. “Streamlining some teams to operate more efficiently,” read an internal company memo quoted by WSJ on Wednesday (13/5/2026). Under the leadership of new CEO John Furner, Walmart is accelerating AI-based digital transformation to face intense competition from Amazon, Costco, and Aldi. WSJ reported that Walmart’s Global AI Acceleration Head Daniel Danker, along with Global Chief Technology Officer Suresh Kumar, have reviewed the company’s internal structure and decided to streamline several teams. In addition to layoffs, some employees are also required to relocate to Walmart’s offices in Bentonville, Arkansas, or Northern California. This relocation policy is said to be part of the company’s operational consolidation strategy. Walmart’s aggressive move to strengthen AI comes as the company continues to catch up with Amazon, which has been more aggressive in developing artificial intelligence technology in the retail sector. Amazon previously launched an AI-based shopping chatbot named Rufus, capable of helping customers answer various questions related to products and shopping experiences. Meanwhile, Walmart in July last year also launched a series of AI-based “super agents” designed to enhance customer experience while simplifying company operations following Danker’s appointment. On the other hand, Furner in February signalled caution regarding this year’s business prospects, reflecting the still fragile condition of US consumers amid economic pressures.