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2% of Sam’s Club Employees to Get Laid Off

Sam’s club employees beware because 2,300 employees will be out of jobs, The Wall Street Journal reported on Friday. That equated to 2% of their 116,000 U.S. employees.

Sam's club

Image courtesy of Flickr

About half the cuts will target salaried assistant managers, and the remained of the lay-offs will be hourly employees and low performing stores. As of now, the chain currently has the same number of management of management positions in every location, regardless of the store’s overall performance.

“Over the years, we’ve migrated to a top-heavy structure in our management,” Sam’s Club CEO Rosalind Brewer told WSJ. “What this does is align the number of assistant managers to the sales of the club and to where our growth areas are.”

Sam’s Club isn’t completely leaving employees out to dry, the company has invited employees to look for other jobs within the company and will offer severance packages to those who aren’t placed by March.

The cuts come as Sam’s Club strives to compete against their major competition, Costco Wholesale Corporation and other online players like Amazon.com’s Prime membership service.

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