Walmart announced on Tuesday plans to cut or relocate approximately 1,000 corporate employees as part of a broader effort to consolidate its global technology teams. The move follows a review of internal structures led by Daniel Danker, who joined Walmart last summer as head of global AI acceleration, and Suresh Kumar, the company’s head of global technology.

According to a memo shared with staff and reviewed by this outlet, Walmart aims to streamline operations by merging its technology product teams to improve efficiency. Many of the affected employees have been asked to relocate from offices such as those in Hoboken, New Jersey, to Walmart’s headquarters in Bentonville, Arkansas, or to its Northern California locations.

This development continues a recent trend of staff reductions and relocations within Walmart’s corporate ranks. Earlier this year, the company filed a notice for 100 layoffs at its Hoboken office as part of compliance with New Jersey state law. Walmart employs roughly 1.6 million people across the United States, making it the country’s largest private employer.

While numerous major companies have announced significant layoffs amid shifts toward artificial intelligence and automation, a Walmart spokeswoman emphasized that these changes are driven by organizational restructuring rather than a reduction in jobs due to AI replacing workers.

Walmart has experienced sustained sales growth over recent years and is now investing heavily in technology, automation, and AI to support continued expansion. The company is also focusing on increasing profits through new revenue streams such as advertising and operational cost reductions. During a recent earnings call, Walmart executives highlighted these strategic priorities.

In line with these initiatives, Walmart has consolidated its global technology platforms across its various divisions, including Walmart U.S., Sam’s Club, and its international business units. Chief Executive John Furner said the integration is expected to enable future growth at a significantly lower marginal cost than in the past.