Walmart Health Virtual Care is laying off 74 employees at its corporate headquarters in Phoenix, according to regulatory documents filed with the state May 17.
The layoffs were filed less than one month after Walmart Health said it would close all 51 of its health centers across five states and shut down its Walmart Health Virtual Care services.
"There were a number of aspects that were going well, and we really want to be part of the solution to improving healthcare in this country," Walmart President and CEO Doug McMillon said on a May 16 call with investors. "But the reality is that given reimbursement rates and costs to serve, we could no longer see a path to achieving an acceptable level of profitability. And we're committed to being disciplined with our investments. We're grateful to our associates that worked in this area."
The retailer's almost 4,600 pharmacies and more than 3,000 vision centers are not affected by the health center closures. Walmart also said employees affected by the closures will be eligible to transfer to any other Sam's Club or Walmart location and will receive 90 days' pay unless they are transferred to another company location or exit the company. Severance benefits will also be available for eligible employees following the 90-day initial pay period.
On May 14, Walmart said it would lay off hundreds of corporate employees and require a majority of its remote workers to relocate to its headquarters in Bentonville, Ark., or the San Francisco Bay and New York City areas, The Washington Post reported.
Becker's has reached out to Walmart and will update this article if more information becomes available.