Sam’s Club and Walmart Face a PR Disaster Caused by Bad HR

Walmart: Everything is awesome! Raises and bonuses for all!

Also Walmart: Shh, we’re closing 53 Sam’s Clubs. Don’t look!

On the same day, people. And they didn’t even tell all the Sam’s club employees that they were being laid off before the poor people arrived to work and found the doors locked.

Everyone is calling this a PR disaster. I’m calling it an HR disaster. Sure, maybe HR wanted to do everything right and they got overruled (it happens, for sure), but HR runs raises and layoffs and this is not how you do it.

When you lay someone off, you are taking away their livelihood. You do that as compassionately as possible. You don’t do it so there’s a very real possibility that an affected employee will find out from the internet before her boss can tell her.

I’m happy that lots of Walmart employees are getting raises. I’m sad that lots of Sam’s Clubs employees are losing their jobs, but I understand it.

Layoffs are an important tool to keeping businesses profitable. Mostly, though, I’m disgusted that they went about it without thought on how this would affect people.

To read more about it, click here: Sam’s Club and Walmart Face a PR Disaster Caused by Bad HR

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13 thoughts on “Sam’s Club and Walmart Face a PR Disaster Caused by Bad HR

  1. What about the WARN act and other things that may apply, here? Did they comply or do we know?

  2. Ooops. The “click here” button does not work … would like to read the rest of the article.

  3. This really angered me. I have been a member of the Sam’s here for 15+ years. After all those years of weekly (or more!) visits, we got to know the people. I am heartbroken at thinking of them showing up to locked doors with signs telling them they are out of a job with no notice. It’s just awful. Although I could go to a different Sam’s club, further away, I am canceling my membership.

  4. I understand Sam’s is paying 60 days wages while the employees try to get jobs at WalMart or other Sam’s clubs. If an employee does not get a job, will be paid severance. While the announcement was not handled in the most deft way, SAM’s appears to be treating its employees pretty well

    1. 60 days pay is mandated by law when you shut down a site without 60 days warning. They aren’t being generous.

      They said some will get severance, but didn’t define who that is. My bet is only full-time employees.

  5. Being that Sam’s Club is part of Wal-Mart, I am quite sure these lay-offs were planned prior to that announcement of “raises “. I am sure this had something to do with the workers trying to unionize at these sites, main reason they closed a few other sites that were regular Wal-Marts. The company only works on a profit basis, no compassion for workers. They even closed the stores in Puerto Rico, while donating the stock as a write-off. I personally don’t patronize Wal-Mart just because of their abuse of employees, while claiming that they are taking care of them.

  6. I’m so not surprised.

    Sadly, none of us will say we won’t shop at WalMart or Sam’s because they have great prices and we all need a deal.

    I interviewed at WalMart for an HR position about 2 years ago. So, since you referenced HR, It doesn’t surprise me as the interview was odd. And, quite frankly, if HR treats HR oddly during an interview, you’re setting the tone.

    1. i don’t shop in any WalMart affiliated store and I won’t. Between their buying practices and their HR practices, Sam Walton must be spinning in his grave.

      I worked for one of AT&T’s predecessor companies for 33 years. I hired in as an hourly employee, union represented, and retired from middle management. I’ve seen unions from both sides. And the pendulum has swung too far away from unionization.

      Individual employees, who are so easily replaceable, have no power. I don’t see the lot of American workers improving anytime soon.

      1. Sam Walton must be spinning in his grave

        I don’t know what the pay levels and hiring practices were in the early ’90s, but when Sam was still alive, the stores were clean, there were no stockouts, and “Made in the USA” was a major selling point.

        I miss Sam.

  7. The raises should have been delayed long enough to allow the employees to be laid off to receive a minimum amount of notice — say, at least 2 weeks — of that fact. Having employees report to work only to find their stores permanently closed is simply indefensible.

  8. I worked at a company that laid off 25% of the workforce and the following week had a “Morale Boosting” initiative. They bought swag (tee shirts, beads, posters), catered meals, and installed flat screen tvs to scroll through happy images. And this was back when flat screens were new and crazy expensive.
    It was completely tone def. We looked around wondering if Jenny could have kept her job instead of having a catered lunch. Or if Joe could have his job back if they didn’t purchase 4 TVs for the department. How many jobs were equivalent to 2K custom tee shirts?

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