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 Fewer than 500 employees are expected to lose their jobs and an
announcement could be made as early as this Friday, according to one
of sources, who declined to be named because the move had not been
made public.
Wal-Mart declined to comment. News of the impending cuts was
reported earlier on Wednesday by the Wall Street Journal.
The cuts will make up a small portion of the more than 18,000 people
employed at the Bentonville, Arkansas office but fit in with a
streamlining effort that has been flagged by Chief Executive Doug
McMillon in recent months.
"There are no cash registers in the office," McMillon told analysts
after the company's annual shareholders' meeting in June to
emphasize his focus on stores as the earnings driver for the
company.
 Speculation of job losses has percolated in Bentonville for several
weeks, fueled in part by reports on the matter by local media outlet
City Wire. Recruiting firms have reported an influx of resumes from
Wal-Mart employees concerned about losing their jobs and suppliers
have braced for cuts that could have a knock-on impact on their
local operations.
The cuts come as the world's largest retailer struggles to shore up
its profit margins, which have been weighed down by a $1 billion
investment announced earlier this year to increase wages for half a
million store-level workers and other cost pressures. The company's
stock is down 26 percent so far this year.
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In August, Wal-Mart reported weaker quarterly earnings and lowered
its annual profit forecast, hit by higher labor costs, a squeeze on
pharmacy margins and the stronger dollar, which has crimped its
overseas business.
McMillon and other top executives are due to present their strategy
for the company at an annual meeting with analysts and investors
later this month in New York.
(Reporting by Nathan Layne in Chicago and Sneha Banerjee in
Bengaluru; Editing by Ken Wills and Miral Fahmy)
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