This post is scary, and one that should most definitely make you think about your future retirement plans. As you may or may not have heard, Walmart is cutting jobs and letting people go today. Not just a few, but thousands. To be more specific, according to CNN, Walmart, the largest private employer in the United States, is facing challenges ahead as it lays off over 2,000 workers across five of its warehouses that fulfill online orders. These are orders that people place on Walmart.com.
The job cuts are affecting states like Texas, Pennsylvania, Florida, and New Jersey, with reductions and elimination of evening and weekend shifts being cited as the reasons behind them, according to Worker Adjustment Retraining Notification (WARN) filings. Now, if you’re retired and working a part-time job, then you probably know that Walmart is one company that hires more retired individuals than any other company in America.
To provide further details…
In a statement, Walmart acknowledged the staffing adjustments and mentioned that the decision was not made lightly, but was necessary to better align with the future needs of customers. The company also expressed its commitment to working closely with the affected associates to help them explore career options at other Walmart locations. If you’re an employee of Walmart, this not only impacts your paycheck but also your retirement savings.
The impact of these layoffs most certainly raises lots of concerns about the overall state of employment and retirement savings. Many workers are scared and they are worried that their retirement funds will dwindle or disappear just like the jobs.
With Walmart’s recent warning of slower sales and profit growth, and its decision to raise the minimum wage to $14 an hour, the company is facing serious issues in retaining store workers in a competitive labor market, especially in lower-wage industries. It’s hard enough today to keep workers, add the economic climate of today and that’s the icing on the cake!
Walmart’s Chief Financial Officer, John Rainey, commented on the financial pressures faced by consumers, with thinner balance sheets and declining savings rates compared to previous periods. This cautious outlook for the rest of the year is further compounded by inflation, which is affecting the purchasing power of Walmart’s core lower-income shoppers and could potentially impact the company’s sales.
Inflation is hitting just about every American out there and it’s no wonder why so many American citizens are concerned about their financial futures. Although Walmart employees are not seeing the tens of thousands of jobs disappear like Amazon, that can happen in the future.
Conclusion: Walmart Job Cuts Should Make You Think Twice About Retirement Savings Planning
If you’re not thinking twice about your retirement savings plan, then you’re doing a disservice to yourself today and your future. Walmart is a financial powerhouse in America and if they are having problems with profits and keeping employees on the payroll, then it’s time for you to start preparing for the worse, regardless of your employer!
What should you do? Well, the first thing you might consider doing is moving your traditional 401(k) to a gold IRA plan. This will allow you to invest in some alternative assets and possibly hedge against inflation.
In an article published in the Journal of Banking and Finance, J. Reboredo is quoted as stating, “We evaluate the implications for mixed gold-currency portfolios, finding evidence of diversification benefits and downside risk reduction that confirms the usefulness of gold in currency portfolio risk management.” This is a good sign that it’s time to consider a gold IRA, especially if you think your job is at risk!