Walmart to simplify store management, cut roles

Walmart (NYSE:WMT) has announced immediate plans to cut store management roles in efforts to simplify store operations.

The retailer will be eliminating the zone manager position, a change that will affect about 14,000 employees, reported Bloomberg. Walmart hopes the measure will put more power in the hands of the remaining managers running the retailer's 4,500 stores.

Walmart's U.S. CEO Greg Foran has prioritized improving customer service in stores. "We've recently undertaken some important activities to simplify our organization and empower our stores, our associates in our stores to make decisions," Foran told analysts on a conference call earlier this month.

The former zone managers will become salaried assistant managers or department managers, without any decrease to their wages. The company will need to hire up to 8,000 new department managers, said Walmart spokesman Kory Lundberg.

The move is part of Walmart's turnaround plan, executed under CEO Doug McMillon. McMillon took the helm more than a year ago. Some of his initiatives have included the recently announced plan to raise hourly employee wages to $9 this year and $10 next year.

For more:
-See this Bloomberg article

Related stories
Walmart founding family to sell company shares
Walmart boosts minimum wage as earnings climb
Walmart asks vendors to support Savings Catcher
Walmart tops list of IT spenders
Walmart's plan to win back shoppers