Wal-Mart China (Photo : Reuters)
Wal-Mart Stores Inc. is set to improve efficiency by laying off 250 staff in China mostly from marketing and merchandising departments after purchasing functions were merged into the Shenzhen headquarters.
A spokesman for Bentonville, Arkansas-based Wal-Mart in China, Ray Bracy, told Business Week that the reduction aims to improve quality and food safety.
Bracy said: "Why would you have 28 buyers in 28 different cities buying bottled water? By creating a logistics network, we've been able to streamline and centralize."
The reduction also follows dismissals of around 30 senior executives in China in November amid a revamp in Asia, which includes management changes in India and store closures in Japan. This was initiated by Scott Price, Wal-Mart's re-appointed chief in Asia.
In 2013, Wal-Mart ended its six-year partnership with Bharti Enterprises Pvt. in India with its decision to focus on wholesale in the country. The company is also focusing on fresh food as it plans to close about 30 stores in Japan.
After fox DNA was found in meat being sold by Wal-Mart as donkey in China, the company is working to have better food safety standards in the country.
Other jobs to be cut off by the company will come from tax and asset protection departments, and the job cuts recently disclosed affect low- and mid-level employees.
Currently, there are 400 Wal-Mart stores in China. By the end of 2014, the company is opening one new distribution center and nine new stores in the country.
The company said in a statement that the openings will bring new facilities in 2014 to 31 and will create 6,000 new jobs.
Wal-Mart is also planning to invest 600 million yuan ($97.5 million) to build a first-of-its-kind shopping mall, which is set to open in the southern city of Zhuhai in 2016, according to Nasdaq.
By 2016, Wal-Mart will also open 110 outlets and distribution centers.
