Major change to Walmart stores expected - leaving customers unimpressed
Walmart has announced plans to make the majority of its stores automated - leaving customers unimpressed.
The supermarket giant confirmed 65% of its stores will be fully automated within the next three years amid problems finding workers.
The change was announced at the company's annual investor meeting in Tampa, US, on Tuesday as it prepares to layoff 2,000 workers who pick online orders for customers.
It is unclear if the move will lead to more job cuts as the country's largest private employer, with around 1.7 million US workers, and 60,000 employees across the world, moves into automated technology.
The company said the move would reduce the need for lower-paid roles.
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The company said the move would reduce the need for lower-paid roles (Getty Images)Walmart said in a statement: "As the changes are implemented across the business, one of the outcomes is roles that require less physical labor but have a higher rate of pay.
"Over time, the company anticipates increased throughput per person, due to the automation while maintaining or even increasing its number of associates as new roles are created."
The company claimed 55% of packages processed through is fulfilment centres will transition to automated facilities by January 2026.
Stephens Inc analyst Ben Bienvenu said: "'This increased efficiency will not only support better inventory management, but it will also support Walmart's rapidly growing e-commerce business."
The supermarket has spent billions of dollars on new technology in order to revolutionise its online order facilities as it cuts back on the number of employees needed to process orders from 12 down to 5.
Mr McMillon said the technology will create roles that “require less physical labour but have a higher rate of pay."
He added: "We are a people-led, tech-powered omnichannel retailer. As it relates to being people-led, it’s about purpose, values, culture, opportunity and belonging. We serve our associates by creating opportunities.”
65% of its stores will have self-checkouts within the next three years (Getty Images)Walmart CEO Doug McMillon said in February he was "most excited about the automation opportunity we have."
However, Walmart customers have been less than impressed with the announcement amid fears technology and AI could replace humans.
One user wrote: "These jobs are going and never coming back thanks to AI. Redundant low skill jobs like these will also not be the only ones."
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Another added: "If robots do everything, people will not have jobs to earn money to buy stuff."
According to a report from the Bureau of Labour Statistics, there are nearly 9.9 million job vacancies and 5.9 million unemployed people across the US, with the supermarket struggling to fill the jobs.
Walmart had hiked their minimum wages earlier this year to $17.50 (£14) an hour in a bid to attract more employees.
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