Thursday, November 7, 2024

Walmart’s relocation mandate just sent a Sam’s Club executive rushing for the exit


It’s been months since Walmart (WMT) said it would require corporate employees to relocate to its headquarters in Arkansas or risk losing their jobs — but that decision is now pushing some executives to resign.

That’s been the case for Cheryl Ainoa, the chief technology officer at Walmart-owned Sam’s Club, who said she is leaving her position after almost five years because she doesn’t want to relocate to the retail giant’s home base in Bentonville, the retail giant confirmed to Quartz in an email.

In May, Walmart announced plans to eliminate thousands of corporate roles in Texas and California, requiring remote workers to relocate to one of its three main hubs in Arkansas, New Jersey, or Northern California. This decision sent shockwaves through the workforce, particularly for the 300 employees who learned during a Zoom call — where they were not permitted to speak — that they would need to move or face potential job termination.

Aiona, who helped oversee innovations such as the exit technology that allows customers to leave the warehouses without receipt checks, will remain in her position until February. She will be succeeded by Sanjay Radhakrishnan, Walmart’s senior vice president of global technology.

Walmart and Sam’s Club did not immediately respond to Quartz’s request for comment.

Earlier this year, Walmart said it would allow certain employees to work remotely, but only part-time. In an employee memo, chief people officer Donna Morris emphasized that in-person collaboration would enhance workforce effectiveness, foster innovation, and strengthen company culture.

Layoffs for employees who hadn’t yet relocated began on Aug. 9.

Since then, the retail giant has aimed to address its worker shortage with a pipeline program designed to funnel hourly employees into higher-level positions. As part of the three-year initiative, the company hopes it can train and certify workers to fill roles as pharmacy technicians, opticians, and software engineers.

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