Wal-Mart's Sam's Club farms out 10,000 jobs
Wal-Mart's buy-it-in-bulk franchise Sam's Club has announced a massive round of job cuts in the coming months, eliminating about 11,000 jobs, the equivalent of approximately 10% of its workforce. 10,000 of the cuts will come from a decision to outsource a number of tasks, most of which are part-time positions. The other 100 positions will be cut because of the termination of a specific project. Sam's Club president, Brian Cornell, says the cuts are not made out of a cost-cutting necessity, but in hopes of boosting sales and increasing customer loyalty. Product demo jobs will be outsourced to Shopper Events, LLC of Rogers, Arkansas. Cornell expects that many of his laid-off employees will, in fact, be hired back by Shopper Events to help in the large task of coordinating and presenting demos at Sam's Club franchises nationwide.
See "Wal-Mart's Sam's Club farms out 10,000 jobs", Stephanie Simon, The Wall Street Journal, January 24, 2010