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Walmart has redesigned its leadership pipeline and is eliminating the store lead position from its workforce in order to expand its bench of second-tier store leaders.
The company said the restructuring will not result in layoffs, however, those impacted were notified today that they will be converted to either an emerging store manager or a coach position, both of which report to the store manager.
This staffing change marks the first major workforce move under new CEO John Furner, who succeeded the retiring Doug McMillon in January. It also follows a 2024 initiative that enabled store managers at Supercenter locations to earn $400,000 in compensation per year, inclusive of bonuses and stock grants.
Leadership pipeline and compensation
In an effort to create a comparable salary for the affected employees, Walmart said emerging store managers could earn a base salary of $85,000 to $120,000, with the potential to earn $119,000 to $276,000 with bonuses. At smaller neighborhood stores, the base pay range will be $65,000 to $110,000.
Turning workforce data into early warnings for high-cost employees
Emerging store managers directly manage associates, and are considered first in line for a store manager role when an opportunity opens. The company currently has 4,600 US stores, but not every location has an emerging store manager position.
Coaches, who oversee particular store departments, such as grocery or household items, will now be eligible for an increased base salary of $65,000 to $100,000, rising to $69,875 to $130,000 with bonuses.
Walmart's larger locations typically have five to seven coaches.
At the end of 2025, Walmart employed 2.1 million people worldwide, with 1.6 million employees in the US.
The 2024 pay bump was so good that store managers stayed with the company longer, prompting Walmart to rework the pathway for other associates climbing the workforce ladder to that position.
"We need to make sure every associate has strong ownership and an intentional career pathway," Walmart US Executive Vice President of Store Operations Cedric Clark told employees in the memo.
Growth guidance and workforce
Walmart eclipsed the $1trillion market cap earlier this year and reported adjusted earnings per share in its fourth quarter report that were higher than Wall Street forecasts. Revenue increased 5.6% to $190.7billion, roughly in line with Wall Street's predictions of $190.6billion.
However, the company was cautious in its 2026 guidance.
For fiscal year 2027, the retail giant expects revenue to increase by 3.5%-4.5%, alongside adjusted earnings of $2.75-$2.85. That was conservative compared with the nearly 5% growth and adjusted earnings of $2.97 per share that Wall Street predicted.
CFO John David Rainey, commented: "Our goal is to outperform this guidance, but we believe it's prudent to start the year with a level of conservatism given the backdrop is still somewhat unstable."
