Three U.S. Tech Hubs Will Be Closed By Walmart, And Staff Will Be Relocated

An employee spokesperson told Reuters that Walmart Inc would close three of its U.S. technology centers.

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A close majority of Walmart (NYSE: WMT)'s technology employees will work in their offices at least two days a week, according to Robert Munroe, its global communications director.

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Munroe said that the big-box retailer was closing offices that housed technology staff in Austin, Texas, Carlsbad, California, and Portland, Oregon, among others. As a consequence, Walmart's global technology head, Suresh Kumar, sent a memo last week that indicated operations would move to various hubs within the company, including a headquarters in Bentonville, Arkansas, or one in San Bruno, California.

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According to him, based on the company's 'location strategy,' we have decided to exit those three hubs as we will no longer have the need for those offices, although the number of people employed at all three offices was hundreds, according to him.

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There is no set date by which (this transfer) must be completed; there is not a set date where it will have to be completed, he continued. According to the company's website, it currently operates 11 tech hubs in the United States and six abroad. The Trade Algo earlier reported.

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The company is expected to pay transfer costs to workers who relocate and make severance payments to those who leave the company in the event they decide to leave Walmart, which employs more than 1.3 million people in the United States.

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A similar directive on returning to work has been issued by a number of other U.S. companies, including Disney, Uber, and Starbucks (NASDAQ: SBUX), in addition to others like Disney (NYSE: DIS ) Co. Disney boss Bob Iger told his employees last month that they would have to return to their corporate offices four days a week beginning in March, while Starbucks instructed its employees that they would have to return to their offices at least three days a week starting in January.

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Two years ago, Kumar wrote in an email to a colleague of his that his vision for the future of the industry is one where working virtually will be the new norm, if not for the majority of his work, then for most.

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It's still within line with the language of that move, according to Munroe.