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Over 1,500 Walmart employees in California face job loss amid store closures in 2025

Walmart will close five California stores in January 2025, affecting 1,500 employees. This move, driven by low profitability, is part of Walmart's strategy to adapt to e-commerce growth.

Walmart to close five stores in California by January 2025, impacting 1,500 employees due to low financial performance and the rise of e-commerce. Photo: LR Composition
Walmart to close five stores in California by January 2025, impacting 1,500 employees due to low financial performance and the rise of e-commerce. Photo: LR Composition

Walmart, the largest retail chain in the United States, has announced the closure of five stores in California starting this month. This decision will impact approximately 1,500 employees and has raised concerns among local communities relying on these outlets for their daily needs.

The company cited poor financial performance as the primary reason for these closures, emphasizing that the affected stores failed to meet expected profitability benchmarks. This move is part of Walmart's broader strategy to optimize operations in response to changing consumer behavior and the rise of e-commerce.

California Walmart Stores to Close in January 2025

  • San Diego: 2121 Imperial Avenue, San Diego, CA 92102
  • El Cajon: 605 Fletcher Parkway, El Cajon, CA 92020
  • West Covina: 2753 E. Eastland Center Dr., West Covina, CA 91791
  • Fremont: 40580 Albrae Street, Fremont, CA 94538
  • Granite Bay: 4080 Douglas Boulevard, Granite Bay, CA 95746

Impact on Employees and Communities

Approximately 1,500 employees will be affected by these closures. Walmart has offered severance packages, job search support, and training programs for those impacted. Employees also have the option to transfer to nearby Walmart locations. Local communities may face challenges, especially those without easy access to transportation, as these stores often serve as critical hubs for essential goods.

Walmart employee in California headquarters.

Walmart employee in California headquarters.

Walmart’s Strategy Amid E-Commerce Growth

Despite these closures, Walmart plans to open around 150 new stores across the U.S. over the next five years. The company aims to adapt to current market trends, focusing on strategic locations with higher growth potential. Additionally, new stores will feature larger and more modern designs, providing an enhanced shopping experience for customers.