The business press is obsessed with Walmart Inc. (NYSE: WMT). It is America’s largest company, both based on employee count, which totals 1.7 million in the United States, and on revenue. The Walton family, who own much of Walmart, is among the richest in the world. And Walmart is often criticized for paying its workers hourly wages so low that many live at the poverty line.
[in-text-ad]
The obsession often turns to making Walmart a company that it is not. A recent Wall Street Journal headline read: “Walmart Lays Off Hundreds of Corporate Workers.” In the second paragraph of the story, the figure is put at 200. Stories based on this ran in The New York Times, Bloomberg, CNBC and CNN Business, among others.
The reason given for the layoffs is that Walmart cut its earnings guidance. It also announced that revenue grew 2.4% to $141.6 billion in the most recent quarter. Net income was $2.1 billion. Will Walmart have sales problems with a recession? Yes. Will it undermine the retailer’s future? No.
Consider how tiny that 200 figure is compared to 1.7 million workers. Consider how little it saves Walmart in expenses. Consider how far it is from an actual reorganization.
Walmart’s move does not deserve large headlines. It is barely a footnote in the scheme of things. Better to look at companies that have laid off thousands or more, against revenue bases that are much smaller.
The Average American Has No Idea How Much Money You Can Make Today (Sponsor)
The last few years made people forget how much banks and CD’s can pay. Meanwhile, interest rates have spiked and many can afford to pay you much more, but most are keeping yields low and hoping you won’t notice.
But there is good news. To win qualified customers, some accounts are paying almost 10x the national average! That’s an incredible way to keep your money safe and earn more at the same time. Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 3.80% with a Checking & Savings Account today Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.
Click here to see how much more you could be earning on your savings today. It takes just a few minutes to open an account to make your money work for you.
Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 4.00% with a Checking & Savings Account from Sofi. Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.