In an ongoing effort to lower Home Office costs, Walmart announced that, effective November 28th, it will begin outsourcing its financial and accounting divisions to New York-based Genpact.
Approximately 550 Walmart employees will transition in late November to work in the new Genpact office, which will be located within the Walmart campus. Genpact will handle back-office operations such as purchase orders and invoices with suppliers and other financial duties. Walmart said all of the impacted employees are being offered comparable jobs, pay and benefits at Genpact. All of the jobs impacted are based in Bentonville.
“We’ll leverage Genpact’s expertise in finance and accounting services and process transformation to further improve quality, reduce the total cycle time of our processes, and deliver value that’s in the best interest of our associates and business.”
Walmart CEO Doug McMillon stated that the company will continue to evaluate the corporate structure and look for ways to optimize workflow. In the past several years, Walmart has made great strides to cut costs in order to fund investments needed to keep up the demands of the burgeoning online sector.
To sum up the current initiatives in Bentonville, McMillon quipped, “there are no cash registers in the home office”.
What are your thoughts on the recent moves by Walmart to optimize its workflow and overhead? Sound off in the comments section.