Between July 31, 2014 and the same date this year, Wal-Mart Stores Inc. netted $130.02 billion in gross profit. The retail giant plans to maintain its profit margins by cutting workers' hours after instituting a wage increase in April, Bloomberg reported.
Wal-Mart has invested $1 billion to raise employees’ wages and give them extra training.
“Amid the investment, we’re focused on growing sales and controlling costs, as you would expect from Wal-Mart,” said Greg Foran, the head of Wal-Mart’s U.S. operations. “We are staying true to our roots. However, we are committed to improving the customer experience and we will protect the investments necessary to achieve this goal.”
Chief Executive Officer Doug McMillon has been pushing to raise Wal-Mart’s minimum to wage to $9 an hour, but Wal-Mart failed to meet financial expectations and posted disappointing earnings last quarter.
The loss of hours has a profound impact on some stores. One anonymous employee at a Wal-Mart in Houston, Texas, said her store has been ordered to trim its labor force by 200 hours per week
"The reduction in hours is taking place only in locations where managers have overscheduled workers, staffing the store for more time than they’ve been allotted,” Wal-Mart spokesman Kory Lundberg told Business Insider. "The reductions won’t affect efforts to better staff stores, shorten checkout lines, and improve cleanliness and stocking."