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Walmart unexpectedly announced it is closing 63 Sam’s Club locations across the U.S., potentially impacting up to 11,000 workers, Business Insider reports.
According to Business Insider, many employees were unaware of the store closures until showing up for shifts to closed stores with notices on the doors. Employees at other locations were sent away by police.
“After a thorough review, it became clear we had built clubs in some locations that impacted other clubs, and where population had not grown as anticipated,” Sam’s Club CEO John Furner says in an email sent companywide Jan. 11. “We will be closing some clubs, and we notified them today.”
In his email, Furner says some of the closed locations will be turned into e-commerce fulfillment centers. Business Insider reports that employees whose positions were eliminated by store closures will have the opportunity to apply for jobs at the centers. The company didn’t say how many employees would be impacted by the closures.
Walmart also announced Jan. 11 that it will increase its hourly minimum wage and give bonuses to employees as a result of the tax reform bill.
According to the company, Sam’s Club was founded by Walmart founder Sam Walton in 1983 in Oklahoma. Walmart’s most recent quarterly report showed sales at Sam’s Club were $14.9 billion.
