Wal-Mart Stores Inc recently announced that its associates would receive benefits and bonuses. The move came after a revision of tax reforms and was set to benefit one million people. Unfortunately, one thousand people had to be relieved off their duties. The areas affected were Sam’s Club joints in Sacramento, Los Angeles and Orange County. 650 staff were released in Sam’s Club. Additionally, Sacramento’s Wal-Mart joint laid off 359 people. The retail enterprise is set to close some stores and thin out staff at both corporate and retail levels.
Part of a greater plan
According to Doug McMillion, the Chief Executive of Wal-Mart, the reduction of tax rates for businesses has availed opportunities for more investments. Wal-Mart is looking into ventures like online grocery and development of fulfillment centers. Memphis is one of the locations that will host the first fulfillment center. Staff are eligible to a revised pay of $11 per hour, better leave plans and annual bonuses. The company has announced outplacement services and compensation plans for staff. Wal-Mart will own shares at Sam’s Club at 14 cents for every share. Walmart anticipates to have 597 clubs after closure of outlets. The clubs would be managed more effectively than before.