Walmart said it would close three U.S. technology centers as the Dow Jones stock is set to report fourth-quarter and full-year financials next week. WMT shares edged lower Tuesday.
Walmart plans to close technology hubs in Austin, Texas, Carlsbad, Calif, and Portland, Ore., the Wall Street Journal reported late Monday. Employees at the affected centers must relocate in order to keep their jobs, according to the Wall Street Journal report. The company also updated its policy, requiring employees to come into the office at least two days a week.
The move marked a reversal from the company's reorientation as consumer shopping habits shifted early in the coronavirus pandemic. A LinkedIn post from Global Chief Technology Officer Suresh Kumar in the spring of 2020 had said the company planned to make "virtual work the new normal" for Walmart's tech operations.
"We've decided that even as restrictions are lifted and other groups in Walmart eventually return to their offices, we will take our time, and think about how we can invent the workspace of the future."
A broad array of companies, ranging from video game publisher Activision-Blizzard to Walt Disney have required workers to begin spending more time back in company offices. Others, including Dow Jones stock Microsoft, Amazon.com and Alphabet, have idled armies of workers in recent layoffs.
Walmart said it will pay for staff to relocate to other offices. Walmart has around 1.7 million U.S. workers and 2.3 million total employees, making it the largest employer among Fortune 500 companies.
Dow Jones Stock WMT To Report Earnings
Walmart stock edged up early before ending Tuesday market trade down 0.27% to 145.52. The Dow Jones stock has formed a cup with handle with an official 154.74 buy point. WMT shares are about 5% below that buy point with fourth-quarter earnings due next week.
Walmart will report earnings early next Tuesday. Analysts forecast Q4 EPS dropping 0.6% to $1.52 while revenue is expected to grow 4% to $159.47 billion. Wall Street projects full-year earnings falling 6% to $6.08 per share and sales increasing 6% to $606.33 billion.
Dow Jones stock Walmart ranks third in the Retail-Major Discount Chains industry group. Walmart stock has an 63 Composite Rating out of 99. WMT shares have an787 Relative Strength Rating, an exclusive IBD Stock Checkup gauge for share-price movement. The EPS rating for the Dow Jones stock is 71.
Retailer Home Depot, also a Dow Jones stock, is also due to report earnings on Tuesday.
Please follow Kit Norton on Twitter @KitNorton for more coverage.
