Sam’s Club To Lay Off More Than 11,000

NEW YORK (January 25, 2010)--The CEO of Sam's Club says he thinks an outside marketing company that Walmart is hiring to do in-store product demonstrations will hire nearly as many people as the more than 11,000 Walmart is laying off from its Sam’s Club stores.

Shopper Events, which is based in Rogers, Ark., currently works with Walmart’s namesake stores on in-store demonstrations, and Sam's Club will now look to the outside company to improve sampling in areas such as electronics, personal wellness products and food items in hopes of enticing shoppers to spend more.

Sam's Club has underperformed the Walmart chain in the U.S. and abroad and CEO Brian Cornell has been working to improve results since taking the helm in early 2009.

In a memo to employees, Cornell said eligible workers would receive severance pay and benefits, and that the company will help them find opportunities at other Sam's Clubs and in Walmart stores, in addition to Shopper Events positions.

“We do not make these decisions lightly, and know that this is a difficult development for the members of our Sam’s Club family who will be leaving the company,” Cornell said in a letter to associates.

“I also know that this will be a hard time for others in the Club who have worked with these associates and, in many cases, formed close relationships,” he said.

Read The Letter

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