Walmart (NYSE:WMT) is cutting the number of hours of some employees in order to raise wages. The decision is part of the company's strategy to spend $1 billion raising wages and giving workers extra training.
Regional executives announced to store managers that expenses needed to be cut in the form of hours, Bloomberg reported. Therefore, some stores are trimming hours from their schedules and asking employees to leave early or take longer lunches.
According to employees from around the United States, Walmart began the reductions a few weeks ago during the back-to-school shopping period. The cutbacks are not supposed to hinder the current strategy of improving staff, customer service, store cleanliness and checkout lines. The company is trying to balance two goals: keeping expenses low and improving stores.
In April, Walmart announced an increase in minimum wage to $9, and up to $10 starting in February. The decision has raised some criticism among senior employees that say newer workers will benefit while experienced staff will lose out. As a result, the company could risk losing valuable staff.
-See this Bloomberg article
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