Walmart Details Sweeping Restructure of Its Supercenter Workforce (2024)

Jon Springer, Executive Editor

September 18, 2020

4 Min Read

Walmart is moving to restructure the workforce of its Supercenters behind fewer and more versatile leadership positions, as well as other sweeping changes that while creating new opportunities and pay raises also makes changes in its bonus structure and could lead to some departures.

A similar program—previously referred to as the “Great Workplace” initiative—has already swept through the retailer’s Neighborhood Market and Sam’s Club stores. The program begins at U.S. Supercenters next month.

Walmart called the new structure a “team-based operating model” that would create new roles for both salaried and hourly leaders at the companyand increase pay for leaders and workers in some departments such as deli and bakery. The changes, however, are coming with a reduction in overall leadership roles and a phasing out of quarterly bonus pay for certain workers getting pay raises. Candidates for new classes of leadership roles will be selected among current department managers, assistant store managers(ASMs) and store co-managers, with those not selected to be offered other roles for which they would receive their same pay at least through October 2021, Walmart said. Some employees on social media channels expressed worry about this aspect of the restructuring, likening it toa “Hunger Games” approach.

Dacona Smith, Walmart’s U.S. chief operating officer, described the forthcoming changes as a move that would make the company more nimble and give associates more “ownership” of their work areas. In some respects, it appears to more closely resemble the efficient approach of discount rivals such as Aldi, which counts a flat leadership hierarchy and cross-trained store workers as a competitive advantage. Other food retailers, including TheKroger Co. and Hy-Vee, were working on similar efficient restructuringprograms last year.

“Across the store, we’re creating small teams of associates who will be cross-trained and given ownership of the work and their area for everything from in-stock to visual standards,” Smithsaid in a blog post. "This means they’ll gain more skills and be able to support associates who want to take time off or just need extra help during a busy shift. For example, associates who prepare fresh food will be trained to maintain pricing and standards in their area—giving them broader skill sets that allow them to help customers and grow their own careers.”

Under Walmart’s current arrangement, many of those merchandising and pricing tasks are left toASMs and DMs (department managers). Those roles will be respectively phased out in favor of smaller numbers of what Walmart will now call Coaches and Team Leads. The current roleof co-manager will also transition to Store Lead. This role, currently responsible for those overseeing large areas of a Supercenter, instead will act as a store manager in training.

Smith described these positions as “future-focused leadership roles.”

“These new positions will develop their teams, deliver our strategic priorities and be responsible for empowering our more than 1 million associates as they take bigger roles in the business—something they’ve proven they’re more than capable of doing during this pandemic,” he said.

“We’re especially excited about the team lead role,”he added.“These associates will lead and develop people, rather than focusing on completing tasks, giving associates a more direct connection to leadership. As we’ve tested this team approach, associates have gravitated to the connection and camaraderie that come with being part of a small team that supports each other and works together toward shared goals.”

Pay Raises for 165,000 Workers

Smith said the structure is built around higher-skilled jobs of the future, “and the compensation for those roles reflects that.”

“The new salaried and hourly teaming leadership roles will come with higher pay, and we’re also raising pay for the current salaried digital, asset protection and auto care center assistant manager roles in the store,” he said.

New wage ranges for the hourly team lead roles start at between $18 and $21 an hour and can go up to $30 an hour in Supercenters. “Through this newtiered structure for team leads, we’re creating room for pay and career growth while investing in areas like pickup and delivery as customers increasingly turn to those options. Those parts of the business will only continue to grow,” Smith said.

Walmart is also raising pay rates in certain areas of the store that call for “specialists,” such as deli and bakery workers and auto care associates. Deli/bakery minimum rates are increasing from $11 per hour to $15 per hour, and most associates in these specialty departments will receive base pay increases of $1 an hour.

Walmart Details Sweeping Restructure of Its Supercenter Workforce (3)

These associates will get theirincreased in pay in October, taking the place of the annual increase they typically receive in February or April. The pay increase will also take the place of the regular quarterly bonus and become part of their base pay going forward, offering more predictabilityin their hourly wages, Smith explained. These associates will continue to be eligible to receive quarterly bonuses for through the end of Walmart’s fiscal year.

“When we’ve asked associates, the overwhelming majority say their hourly wages are the most important part of their pay, well ahead of quarterly bonuses,” Smith said.

Walmart Details Sweeping Restructure of Its Supercenter Workforce (2024)

FAQs

Walmart Details Sweeping Restructure of Its Supercenter Workforce? ›

Walmart is moving to restructure the workforce of its Supercenters behind fewer and more versatile leadership positions, as well as other sweeping changes that while creating new opportunities and pay raises also makes changes in its bonus structure and could lead to some departures.

Why is Walmart restructuring? ›

Walmart restructure to reduce divisions, regions Walmart restructure to reduce divisions, regions. Wal-Mart Stores Inc. A Wal-Mart Stores spokesman confirmed the company was restructuring its field staff in a means to improve efficiency and speed amid a dynamic retail marketplace.

Do Walmart employees have the right to refuse service? ›

If you are not following their rules, if you're bring a nuisance or a danger, if you're committing crimes, if you're bullying staff, etc they are perfectly free to deny you service. Yes Walmart or any other retail store has the right to refuse service for any reason.

Is Walmart laying off hundreds of hired as permanently remote workers? ›

Walmart lays off hundreds of employees and requires others to relocate Walmart said it will require most remote workers in its Dallas, Atlanta and Toronto offices to relocate to its offices in Bentonville, Arkansas; Hoboken, New Jersey; and the San Francisco Bay Area.

Why is Walmart rearranging their stores? ›

Our new and remodeled stores will reflect Walmart's Store of the Future concept, featuring improved layouts, expanded product selections and innovative technology to help our associates better support our customers and make shopping more convenient and enjoyable.

Why is Walmart laying off corporate employees? ›

Last month, the Bentonville, Arkansas-based retail giant said it would lay off several hundreds workers as part of office consolidation requiring office workers in Dallas, Texas, Atlanta and Toronto to relocate to Bentonville, Hoboken, New Jersey, or the San Francisco area.

What is the real reason Walmart is closing so many stores? ›

Since things are more expensive for just about everyone, it's no surprise that even budget-friendly retailers like Walmart (WMT) are seeing an impact. The retail giant closed approximately 24 stores in 2023 due to a mix of factors, including lower-than-expected performance, inventory shrink, and economic downturn.

Why is Walmart relocating employees? ›

Thousands of employees from smaller offices and remote workers around the U.S. have been ordered to the retailer's corporate hubs, a move by the company to draw more people back to offices.

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