Walmart, the world's largest retailer, plans to close three tech hubs in India and will ask employees to return to the office. The announcement comes as the company seeks to streamline its operations in hopes of bettering its financial performance.
The centers, which were opened in recent years as part of Walmart's push into technology and e-commerce, are expected to be shuttered by mid-2023. The closures are part of a broader effort by Walmart to reduce costs and improve profitability at its current locations. Mostly every company is reducing cost and Walmart is also doing the same.
The company said it will close e-commerce technology centers in Dallas and San Francisco as well as a cross-functional team in New York.
The moves are part of a broader effort by the retailer to improve its technology infrastructure and reduce costs. The company also announced plans to invest $2 billion in technology over the next five years.
In March, Walmart said it would spend $300 million to upgrade nearly 4,000 stores with new technology like digital signs and self-checkout kiosks. The company said it would also cut jobs at some of its distribution centers by more than half, eliminate positions at some corporate offices and move others into space closer to customers.
The closures come just months after Walmart acquired Jet.com for $3 billion, adding online shopping capabilities to its store base. It also acquired e-commerce startup Community Foodservice Inc. Walmart is closing three tech hub locations, including one in Silicon Valley and two in Colorado, as the company looks to focus on its e-commerce operations.
The company announced plans to close the Silicon Valley location on July 31 and will shut down the Boulder and Denver centers by August 15.
Walmart CEO Doug McMillon said late Tuesday that he is committed to building a more technology-focused company that can better compete with Amazon. "We know we still have work to do," he said. "We're going to put all our energy into doing what's right for customers."
Walmart is number one when it comes to supermarkets or stores, but the company is losing its edge when it comes to tech.
The retail giant is closing three tech hubs in New York City and Austin, Texas, as part of a shake-up that will see Walmart.com and other digital capabilities move from its current Silicon Valley home back to New York City. The retailer also plans to hire 3,000 people over the next year and invest in technology for the first time in years.
"We are making investments in data centers and technology capabilities that allow us to serve customers better," said Walmart CEO Doug McMillon during an earnings call on
Thursday. "This involves a lot of changes."
Walmart has been looking at ways to diversify its business away from retailing for years now and has tried acquiring companies like Jet.com and Bonobos both later sold but has struggled with integrating those acquisitions into its core retail operations. The company's stock price has risen significantly since then-CEO Mike Duke stepped down in 20, but he still remains with Walmart. No doubt Walmart has shown every supermarket a right direction to lead in the market. Brands like spencer and spar are also in the line but no one can defeat Walmart when it comes to supermarket Knowledge!
Many reviews says that closing or removing three tech hubs isn’t a good idea, but still Walmart CEO says they had to do it because of some other plans regarding the future planning and technology.
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