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Walmart plans restructure with closure of 269 stores worldwide

Published 18 January 2016

Walmart is closing 269 stores across the globe as part of its corporate restructuring plan following a financial review.

Walmart closure

The company will bring down shutters on 154 US stores, 60 stores in Brazil and others from the rest of the world. Yet, the closures account for only a small part of the 11,000 stores that the department store chain owns across the world, reports International Business Times.

The move will see 16,000 workers being displaced of which 10,000 belong to the US stores.

In its media release, the company was quoted by International Business Times as saying: "More than 95 percent of the closed stores in the US are within 10 miles on average of another Walmart, and the hope is that these associates will be placed in nearby locations.

"Where that isn't possible, the company will provide 60 days of pay and, if eligible, severance, as well as resume and interview skills training. Whether with Walmart or elsewhere, the company's objective is to help all associates find their next job opportunity."

Three months ago, Walmart CEO Doug McMillon had addressed investors where in he stated that the company would review the store count during the tough trading period.

He said that the decision to close the stores was a tough call but an essential one to bolster the company's future.

The CEO also added that the company would open more than 300 stores in 2017 around the world, the publication reports.

Most of the US stores that would be shut down belongs to the small concept of Walmart Express. This format was launched in 2011 under a pilot program.

Under its restructure program, Walmart plans to fortify its Supercenters, Neighborhood Markets, the e-commerce business and bolster Pickup services, diamonds.net reported.

Image: Walmart to strengthen its Supercenters. Photo: Courtesy of GeneralCheese/Wikipedia.