Walmart is shutting down tech hubs and bringing IT workers back to the office

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February 14, 2023

Walmart is closing tech hubs in Austin, TX, Carlsbad, CA and Portland, OR, and requiring workers to relocate to main offices in San Bruno, CA, and retailer headquarters in Bentonville, AR.

Workers affected by the decision were notified last week in a memo from Suresh Kumar, Walmart’s global chief technology officer, reports the Wall Street Journal. The retailer will pay relocation expenses for the workers affected by the decision and give a settlement to those who choose to stay.

Relocating workers are being asked to return to the office two days a week, although some will be allowed to continue working remotely full-time. Workers at Walmart’s headquarters have been working in person five days a week since last year, according to the Journal.

Robert Munroe, director of global communications at Walmart, told Reuters: “Everything is variable; there is no fixed date that [this transfer] It must be completed.”

It’s unclear at this point whether Walmart’s decision to close the three hubs is its only move or the beginning of a big change. The retailer currently operates 11 tech hubs across the United States, including the three that have closed and six more outside the country.

Walmart has given its corporate tech staff more leeway when it comes to getting back to the office. The Journal reports on a LinkedIn post written by Mr. Kumar in 2020 when he addressed the topic. “We’ve decided that even as restrictions are lifted and other Walmart groups eventually return to their offices, we’re going to take our time and think about how we can invent the workspace of the future.”

Many companies have decided to bring tech and other employees back in person as they are concerned about the dangers of the COVID-19 ebb. Business Insider last month developed a list of companies now requiring employees to report to their offices at least part-time. The list included Apple, Citigroup, Disney, Goldman Sachs, Google, JPMorgan, Salesforce, Starbucks, Twitter and Uber.

A ResumeBuilder.com survey of 1,000 business leaders found that 90% plan to require employees to return to the office at least some of the time in 2023. 21% plan to part ways with workers who refuse to return to work by person.

DISCUSSION QUESTIONS: Will Walmart’s decision to close three tech hubs, relocate workers and require them to report to the office at least twice a week will increase productivity within its IT group? What effect, if any, do you think it will have on Walmart’s tech worker recruitment and retention efforts?

Mental trust

“I don’t see it as an increase in productivity, rather as having the opposite effect.”

“A manager who can’t provide leadership and drive performance can’t do it in person any better than remotely. That’s a big clue…”

“Sorry, but I don’t think that’s going to happen; the attractions of working remotely (at least part of the time) in a high-demand city like Austin are too much to overcome.”

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