The e-tailer Walmart announced plans to close 50 stores and eliminate 250 jobs in the United States, leaving a gaping hole in its revenue and earnings for the fourth quarter of 2018.
The move comes as the company has been forced to cut back on hiring and cut back its spending on research and development to meet tough competition from Amazon and other online giants.
The move to cut 500 jobs from its U.S. retail stores comes as it is battling a wave of online shopping fraud and cyberattacks, as well as other concerns over safety and privacy.
Walmart has faced a series of cybersecurity threats, with the FBI investigating the company for allegedly paying employees to help it track down hackers who stole credit card numbers and other personal data.
Walmart says it will start cutting some of its workforce by January, and by mid-February, it will shutter about 20 percent of its U,D.
A source familiar with the company’s plans said Walmart would lay off about 100 workers in its retail business, including 50 in its U.,D.
store, and 250 workers in the company stores.
The company said it expects to close all its U.-based stores by mid 2018.
For its fourth quarter, Walmart reported a net loss of $1.7 billion, or $0.14 per share, compared to a profit of $2.5 billion, $0,10 per share.
Some analysts are expecting Walmart to report a loss of as much as $1 billion, to $0 and $0 per share in the fourth quarters of 2019 and 2020.
Despite the impact on the company, Walmarts stock is up about 16 percent since the announcement.
Analysts polled by FactSet say Walmart will continue to struggle, and analysts expect the company to report lower revenue for the quarter.
Walmart’s stock was down 3 percent in early trading on Tuesday.
As part of the deal with Walmart, Walmart will also buy back up to $20 billion in stock.