Walmart would cut or relocate about 1,000 corporate workers as it looks to combine more of its global-technology and AI product teams, the Wall Street Journal reported on Tuesday, citing people familiar with the situation.

Under new CEO John Furner and a reshaped leadership team, the world’s largest retailer is ramping up an AI-led digital transformation to better take on Amazon.com, Costco, and Aldi.

Here Are the Details:

• Head of global AI acceleration Daniel Danker, and head of global technology Suresh Kumar have reviewed the retailer’s internal structures and decided to streamline some teams to operate more efficiently, the WSJ report said, citing the leaders as saying in a memo sent to staff.
• Affected staff can apply for open roles within the company, the report said, citing the memo.
• Many of the affected staff have been asked to relocate to Walmart’s Bentonville or Northern California offices, the report said, citing the people familiar with the situation.
• Walmart did not immediately respond to a Reuters request for comment.
• The company has invested heavily in AI to close gaps with its largest rival, Amazon, which had a head start with its chatbot, Rufus, a Gen AI-powered shopping assistant that answers various shopping queries.
• Walmart, in July last year, rolled out a suite of AI-powered “super agents” designed to improve the shopping experience for customers and streamline operations following Danker’s appointment.
• Furner kicked off his tenure with a cautious outlook for the coming year in February, reflecting the fragile state of U.S. consumers.

(Reporting by Neil J Kanatt in Bengaluru; Editing by Shilpi Majumdar)