"America's largest employer" will not be "adding people" in the next three years! Walmart Inc. (WMT.US) CEO "admits" that AI will change all positions.
Walmart CEO bluntly stated, "AI will change every job, this is very clear," the company plans to maintain a total of 2.1 million employees in the next three years, but the composition of positions will undergo significant adjustments. Walmart has conducted a comprehensive assessment of the impact of AI on its workforce during high-level meetings, cutting some positions through warehouse automation while adding new AI-related positions.
The United States' largest private employer, Walmart Inc. (WMT.US), is facing the labor transformation challenge brought about by AI. The company's executives have explicitly stated that AI technology will eliminate certain jobs and reshape the entire workforce, signaling a major shift in attitude towards the employment impact of AI by large corporations.
On September 26th, it was reported that Walmart Inc.'s CEO Doug McMillon made one of the most direct assessments by a large company CEO about the impact of AI on employment. He stated:
"AI will change every job, that much is clear. Perhaps there are jobs in the world that AI won't change, but I can't think of any."
As a response strategy, Walmart Inc. plans to maintain the overall size of its global workforce of around 2.1 million employees over the next three years. The company's Chief People Officer Donna Morris stated that while the total number of employees will remain stable, there will be significant changes in job composition.
This statement reflects a rapid shift in the way business leaders are discussing the impact of AI on labor costs. Several companies, including Ford, JPMorgan Chase, and Amazon.com, Inc., have already begun directly forecasting AI-related layoffs and advising other employers to prepare for workforce changes.
Comprehensive examination of the impact of AI on jobs
According to reports, Walmart Inc. executives have begun to examine the impact of AI on the workforce at almost every senior planning meeting. The company's leadership is tracking which types of jobs will decrease, increase, or remain stable in order to assess where additional training and preparation are needed.
McMillon stated at an employee meeting held at Walmart Inc.'s Bentonville headquarters this week: "Our goal is to create opportunities for everyone, ensuring that everyone can successfully transition to the new era."
Walmart Inc. has already developed a chatbot called Siasun Robot&Automation for customers, suppliers, and employees, which the company refers to as "agents." The company is also using AI to track trends in the supply chain and products to a greater extent.
Some of these changes have already had a ripple effect in the workforce. With the help of AI-related technologies, Walmart Inc. has automated many of its warehouses in recent years, leading to some job reductions.
At the same time, new positions are being created. For example, Walmart Inc. recently created the position of "agent builder," dedicated to building AI tools to assist employees of businesses.
The company expects to increase personnel in areas such as home delivery or high-touch customer service positions (such as bakeries). In recent years, Walmart Inc. has also increased positions for in-store maintenance technicians and truck drivers.
McMillon stated that the pace of change in the entire industry would be gradual. For example, customer service tasks in call centers and online chatting functions will quickly become more dependent on AI, while other tasks will not.
He also mentioned that although the company is selling Siasun Robot&Automation to Walmart Inc. employees recently, "we still serve humans before we serve the AI and its market capability."
Industry widely embracing AI transformation
Elsewhere in the business world, executives are pushing companies to fully embrace AI technology. Some companies have created internal "heat maps" to interpret which roles or tasks may be automated by AI, while others are encouraging employees to propose new projects.
Agricultural company Cargill has identified "lighthouse" projects in areas such as research and development and supply chain that are suitable for AI reform.
Recently, it has been reported that there has been an increase in warnings about AI-related job cuts in the past few months.
Global IT consulting giant Accenture Plc Class's CEO Julie Sweet told investors on Thursday that the company is "eliminating" employees who cannot be retrained for the AI era.
Ford Motor Company CEO Jim Farley stated this summer:
"AI will replace half of America's white-collar workers."
Ronnie Chatterji, Chief Economist of OpenAI, stated at the Bentonville meeting:
"AI is just beginning to have ripple effects in the job market. I think you will see larger impacts in 18 to 36 months."
Although there is anxiety among employees and leaders, many executives believe that the US labor market remains healthy, and they do not expect AI to lead to mass unemployment.
Joe Baratta, Global Head of Private Equity at Blackstone Inc., stated at the Bentonville meeting:
"I think the history of technological innovation shows that people have reacquired skills and found profitable employment opportunities in other aspects of the economy."
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