- Walmart is laying off 29 of 56 employees at a New York City office where its Allswell mattress brand and other e-commerce functions are based.
- Walmart will continue to sell Allswell mattresses, bedding, and other products in stores and online.
- “Our incubation strategy was designed to create unique brands that reach niche customer audiences,” a Walmart spokesperson said. “We’re integrating many of these brands as private brands within Walmart as we continue to deepen our category expertise and strengthen our ability to offer customers a larger range of products.”
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Walmart is laying off more than half of employees at an e-commerce office in New York City, the company confirmed to Business Insider.
The layoffs, which take effect April 24, will impact 29 of 56 total employees at the office, where Walmart’s Allswell mattress brand is based, along with other corporate functions that are focused on brand incubation.
But the Allswell brand isn’t going anywhere. Walmart will continue to sell Allswell’s mattresses, bedding, and other products online at allswellhome.com and in Walmart and Sam’s Club stores, a Walmart spokesperson said.
The layoffs are part of Walmart’s broader strategy of incubating and growing brands before folding them into the larger organisation, the spokesperson said.
“Our incubation strategy was designed to create unique brands that reach niche customer audiences,” the Walmart spokesperson said. “We’re integrating many of these brands as private brands within Walmart as we continue to deepen our category expertise and strengthen our ability to offer customers a larger range of products.”
Walmart also recently confirmed 200 layoffs at Hayneedle, another one of its digital brands, and said it was integrating the Hayneedle business and select functions within Walmart.com.
“This natural progression of integrating an acquisition allows us to fully leverage Walmart’s assets for Jet and leverage Jet’s talent for Walmart,” Walmart e-commerce CEO Marc Lore said in a blog post at the time.
The recent rounds of layoffs at Hayneedle and Allswell follow the departure of former Walmart executive Andy Dunn, who served as the company’s senior vice president of consumer brands. In that role, he managed Walmart’s acquired brands and oversaw the launch of Allswell in 2018.
Dunn announced his departure from Walmart in mid-December. He joined Walmart in 2017, after the company acquired his menswear company, Bonobos.
This article was updated to clarify that the layoffs affected other e-commerce functions.