Sam’s West, Inc., popularly known as Sam’s Club, has announced the closure of 63 of its stores in the last month across the country. Illinois leads the list with the maximum number of store closures. Sam’s Club is a chain of membership-only retail warehouse clubs, which runs as a subsidiary of Walmart Inc (NYSE:WMT) since 1983. A recent Worker Adjustment and Retraining Notification (WARN) report filed by Sam’s Club reflected that the closings would lead to a total of 1,137 layoffs at its stores in Illinois.
Sam’s Club layoffs in Illinois are stretched across Wheeling (138), Streamwood (191), Matteson (166), Naperville (170), Batavia (150), Moline (155), and Romeoville (167).
The WARN report also specified that the layoffs at all the stores in Illinois would start from March 16, 2018, and end on April 13, 2018.
Last month, the company said in a statement that the decision to close stores was made after a detailed performance review as it will be transforming its business.
John Furner, president and CEO of Sam’s Club, said, “Transforming our business means managing our real estate portfolio and Walmart needs a strong fleet of Sam’s Clubs that are fit for the future.” He further added, “We know this is difficult news for our associates and we are working to place as many of them as possible at nearby locations. Our focus today has been on those associates and their communities, and communicating with them.”
According to a Sam’s Club press release, Walmart will support the affected associates by providing them with a bonus and 60 days of pay. Besides this, eligible employees will also receive a severance package.
More Layoffs at Walmart in 2018
Walmart will be cutting a total of 1,000 corporate office jobs this year and the next to streamline its retail empire, which is under threat from online stores.
The initial phase of layoffs in January 2018 resulted in around 400 to 500 job cuts, impacting the company’s marketing, human resources, merchandising, real estate, and other divisions.
The second phase of layoffs will hit in 2019. As per the company’s report, fewer than 500 positions will be affected as some buildings will be consolidated for Walmart’s new corporate headquarters.
After the unexpected announcement of the 63 Sam’s Club store closures, Wal-Mart announced a bonus of up to $1,000 for some of its workers. However, the bonus would only be given to employees who had worked at the company for at least 20 years. Walmart also confirmed it will lay off about 3,500 co-managers nationwide, replacing them with new assistant managers, who will have comparatively lower pay.
After all, the layoffs at Sam’s Club stores in Illinois are part of an ongoing trend to sustain the retail business.
“WARN notice,” Illinois Work Net Center, last accessed February 14, 2018.
“Hundreds To Lose Jobs With Sam’s Club Closures In Illinois,” Buffalo Grove Patch, February 13, 2018.
“After bonus announcement, Walmart fires thousands of co-managers, replaces them with cheaper workers,” ThinkProgress, January 13, 2018.
“Wal-Mart Job Cuts Rise to 1,000 in Company’s Latest Shake-Up,” Bloomberg, January 26, 2018.