Many Sam’s Club employees today found out that they no longer had jobs in the worst way possible: The doors to their workplace were simply locked with a note posted stating the closure.
But, according to Walmart—which owns Sam’s Club—these employees will be paid for the next 60 days. In addition, they will be eligible to apply for transfers to other Sam’s Club or Walmart stores.
News organizations across the country began visiting their local Sam’s Club stores and chatting with out-of-work employees, like this reporter in Houston.
Sam’s Club shutdown? Employees at this S Loop store tell me they showed up to work and were told store is closed effective today. Sign on door says same thing. Hearing other stores also affected. Waiting on answers from parent company, Walmart #khou11 pic.twitter.com/RtbY7EhiIK
— Jason Miles (@JMilesKHOU) January 11, 2018
Walmart confirmed to Business Insider that they were in the process of shutting down 63 Sam’s Club locations throughout the U.S. However, 10 of the defunct Sam’s Clubs will be reopened as e-commerce distribution centers.
Based on Business Insider’s calculations, that means approximately 11,000 people could be out of work with no notice.
Getty Images | Scott OlsonCompany Gets Flack For Abrupt Closures
Rest assured, people were not happy with the abrupt decision to shut down stores. The company sent out an email Thursday afternoon and acknowledged the closures on Twitter in response to a tweet.
One Twitter user, YourMCAdmin, wrote, “They (Sam’s Clubs) are heartless people. I feel terrible for the thousands of people who just lost their jobs.”
Wow, a whole lot of @SamsClub locations shut down today while giving 0 notice to workers. That sounds like the management team alright. They are heartless people. I feel terrible for the thousands of people who just lost their jobs.
— YourMCAdmin (@YourMCAdmin) January 11, 2018
In response, Sam’s Club wrote:
“After a thorough review of our existing portfolio, we’ve decided to close a series of clubs and better align our locations with our strategy. Closing clubs is never easy and we’re committed to working with impacted members and associates through this transition.”
After a thorough review of our existing portfolio, we’ve decided to close a series of clubs and better align our locations with our strategy. Closing clubs is never easy and we’re committed to working with impacted members and associates through this transition.
— Sam's Club (@SamsClub) January 11, 2018
Twitter user YourMCAdmin appropriately captured the sentiment of the workers who now don’t have jobs in his next response.
“My problem isn’t with you closing stores,” he wrote in his tweet. “It’s closing stores without telling the employees. How would you, as a social media rep, like to come in to work tomorrow and find out you were fired?”
My problem isn't with you closing stores. It's closing stores without telling the employees. How would you, as a social media rep, like to come in to work tomorrow and find out you were fired?
— YourMCAdmin (@YourMCAdmin) January 11, 2018
Closures Come On The Heels Of Walmart Wage Raise
Interestingly enough, the closures came on the same day that Walmart decided to raise its starting hourly wages to $11. In addition, it announced that they are expanding employee benefits and offering bonuses up to $1,000. According to USA Today, Walmart employees who’ve worked at the company for 20 years will get the full $1,000 bonus and “most will get up to a few hundred dollars.”
Excited to share some news today! We’re raising our starting wage for all hourly associates in the U.S., expanding benefits & offering a one-time bonus! 💛 Learn more from CEO Doug McMillon: https://t.co/vgBJ1KRLB6 pic.twitter.com/pPEdZCYSr1
— Walmart (@Walmart) January 11, 2018
Which Clubs Are Affected?
The company has yet to disclose a full list of stores that are closing. However, reports have been coming in from around the country stating that closures have occurred in the following states as well as in Puerto Rico: Alaska, Alabama, Arizona, California, Connecticut, Florida, Georgia, Illinois, Indiana, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, New Hampshire, New Jersey, New York, North Carolina, Ohio, Tennessee, Texas, Virginia, Washington and Wisconsin.
Business Insider has been keeping a running list of closures based on media reports, if you’re curious.