The largest US supermarket chain, Walmart Stores Inc, is planning to cut down 7,000 back-office jobs in its US stores to improve in-store customer service.
The retailer is eliminating positions that manage an individual store’s daily cash flow or process claims from manufacturers delivering goods directly to stores, among other tasks.
The company said in a statement that the affected employees will have the option to work in another role at Walmart.
Walmart said some people may have the opportunity to transition into higher paying roles — like assistant store managers — while other roles may pay less than their current salaries. The transitioning process is expected to extend into 2017.
The positions are being cut because Walmart is implementing a modernized system for bookkeeping and tracking inventory.
Walmart has been hit hard by competition from online shopping sites, particularly Amazon, and the company has announced store closures and job cuts multiple times over the past year.
Walmart, which has been the target of trade union protests over low pay for the past few years, raised its minimum pay rate to $10 per hour earlier this year and changed its scheduling system to improve staffing at peak hours.
Wal-Mart employs roughly 1.5 million people in the US, according to the company’s website.