In an effort to cut costs amid a slowing job market, Walmart (WMT.N) is changing the hourly starting wage structure for entry-level store workers.
According to a Walmart spokesperson, Anne Hatfield, the change means that store employees such as cashiers, personal shoppers, stockers, self-checkout helpers, and associates manning departments such as sporting goods or electronics will all receive the same hourly starting wages that are paid at the store instead of different levels previously.
As higher-skilled positions, deli, auto center, and bakery workers will continue to receive higher starting wages, she added.
The Money Road Diary, which was quick to report the pay structure changes that came full circle in mid-July, said the progressions mean paying some new store laborers short of what it would have three months prior, refering to archives seen by the Diary and store laborers.
Depending on where the store is located, Walmart pays its employees different starting wages. Workers in the Northeast, for instance, begin their careers at higher rates than those in the Midwest.
According to the spokesperson, the new wage structure will not alter Walmart’s $14 minimum hourly wage nor will it result in pay cuts for existing employees.
“We can have consistency in staffing across the store, have better client support and consider new open doors for partners to learn things,” Hatfield said.
In afternoon trading, the company’s shares gained about 1%.
Walmart’s move comes when U.S. work development information in August showed that the work market was easing back in light of the U.S. national bank’s strong rate climbs to cool interest in the economy, which has proactively begun to see request falter for optional things.
In an effort to cut costs, Walmart was said to be asking some of its 16,000 pharmacists in the United States to voluntarily reduce their working hours and accept pay cuts, according to a report in August by Reuters.
Nevertheless, the retailer has outperformed rivals due to its focus on groceries, which are increasingly taking up a larger portion of consumers’ budgets at a time when inflation is clogging their pockets. In August, the business raised its forecasts for the entire year for the second time this year.
Over the past few years, the retailer has been increasing wages to attract employees and combat labor shortages brought on by the COVID-19 pandemic.