Walmart Cutting Workers’ Hours As It Increases Wages

In recent months, Walmart increased pay for entry-level employees so that all workers were making at least $9/hour. At the same time, the retailer’s earnings have come up short of expectations, leading Walmart to instruct managers to curb spending by cutting hours for some workers.

Bloomberg News reports that Walmart HQ recently explained to store managers that if they have over-scheduled their staff — that is, if the store’s sales projections aren’t in line with its labor spending — they may need to do things like send people home early or direct them to take a longer, unpaid lunch break. Bloomberg says dozens of employees have confirmed these types of hour reductions in their stores have already begun to take place.

Walmart claims this won’t affect efforts to provide better customer service, cleaner stores, or properly stock shelves.

However, one Texas Walmart staffer says her store has cut 200 hours of worker pay per week from its ledger. In a single day, eight workers — including department managers — had been sent home by late afternoon. The employee says a customer had to wait 30 minutes for service because of the lack of staff.

Want more consumer news? Visit our parent organization, Consumer Reports, for the latest on scams, recalls, and other consumer issues.