More Walmart Layoffs: Massmart To Cut 1,440 Jobs, Close 34 Stores

Massmart Holdings Ltd. (MSM.JO), the Walmart-owned (WMT) retailer in South Africa, said it will cut up to 1,440 jobs after slow sales. The company also said it will close up to 34 stores.

Led by former Walmart executive, CEO Mitchell Slape, Massmart has seen its share of struggles with sales losses as South Africa’s unemployment rate rises and the cost of living continues to increase along with a weakening currency, Reuters reported. The company also reportedly saw its first half-year loss in two decades back in August.

Massmart owns Dion-Wired – an electronics and appliance retailer – and Masscash – a food and cosmetic outlet, which both have stores that are on the chopping block. The company also has ownership of chain stores Game and Makro.

“A total of 34 Dion-Wired and Masscash stores and approximately 1 440 employees are potentially affected by this process,” the company said in a statement to Reuters.

Massmart told Bloomberg that it is already in talks with local unions and the store closures could take up to two months. Massmart has a total of 450 stores located in 13 countries and employs about 48,500 full-time workers.

Shares of Massmart stock were up 5.80% as of market close on Monday while shares of Walmart stock were down 0.55% as of 3:45 p.m. EST the same day.