Walmart Cuts Starting Pay For Some Entry-level Store Workers

Walmart Cuts Starting Pay For Some Entry-level Store Workers

September 15, 2023

Walmart has trimmed the starting pay for newly hired employees who prepare online orders and stock shelves, reports said. The move by the retail behemoth, amid rising labor costs, is said to be aimed at efforts to improve staffing.

Starting wages were reduced in July for newly joining personal shoppers and stockers who help prepare orders for curbside pickup or delivery.

According to the company, the changes were made so its starting pay was consistent among store employees.

The company said, “Consistent starting pay results in consistent staffing and better customer service while also creating new opportunities for associates to gain new skills from experience across the store and lay the groundwork for their career regardless of where they start.”

Meanwhile, no existing employees in those roles will have a pay cut.

As part of the recent changes, the company also adjusted pay bands for more experienced employees, which has resulted in an increase in pay of around 50,000 store employees, according to Walmart spokeswoman Anne Hatfield.

The company, which is the country’s largest private employer with 1.6 million workers, in March 2021 had raised pay for personal shoppers and stockers following coronavirus pandemic driven surge in e-commerce sales. Walmart U.S. CEO John Furner then had cited significant sales growth for the decision.

In January, the company had raised its minimum wage for store employees from $12 to $14.

In its recent second quarter, the retailer’s e-commerce sales for Walmart U.S. Grew 24%.

In April, Walmart had said that it expects about 65% of its stores to be serviced by automation by the end of fiscal year 2026. At 2023 Investment Community Meeting, the company said it expects approximately 55% of the fulfillment center volume will move through automated facilities, and unit cost averages could improve by approximately 20% by the end of fiscal year 2026.

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