Wal-Mart cuts 11,200 jobs at Sam's Club

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Sam's Club, the warehouse club division of Wal-Mart Stores Inc is cutting roughly 11,200 jobs, or about 10 percent of its

workforce, as it outsources in-store product demonstrations and eliminates positions used to recruit new business members.
Sam's Club Chief Executive Officer Brian Cornell said on Sunday that the retailer would outline charges associated with the job cuts in February, when it releases fourth-quarter results. He said he did not expect any "material impact" on its financial results.
"We look at this as an investment in the in-club experience," Cornell said in an interview. "This is not a cost-cutting move for us in the short term. We really hope it will be cost neutral for our operation. It's an investment in building loyalty, enhancing the member experience and driving future growth."
Cornell took the helm at Sam's Club on April 3 last year and has been looking for ways to boost its sales and increase its membership ranks. Members pay an annual fee to shop in its clubs and get discounts on everything from bulk-sized packages of toilet paper to raspberries.
Sam's Club said it will use Shopper Events, a third-party company, instead of its own employees to run in-store product demonstrations and hand out food samples -- a popular tactic used by warehouse clubs to entice shoppers to buy new items.
In a memo to employees, Cornell said Shopper Events will develop a demo program, called "Tastes and Tips", that will offer improved demonstration of items like food, beverages and electronics.
The shift means Sam's Club will cut 10,000 jobs primarily held by part-time workers. Current Sam's Club demo employees can apply for new jobs with Shopper Events.