Employers all across the world are showing their real faces in the time of Corona. Where some of the corporate giants are firing their employers to get a better hold of the liquidity, others are working towards making things better for the employees. Where Canadian Airlines fired more than twenty percent of its employees, Walmart has spent more than $900 million on its employees.
Walmart and its employee bonuses:
According to the recent reports, Walmart has incurred a cost of around $900 million on the well being of its employees. This has occurred in the first quarter. According to the figures, there is a possibility that the second quarter may take an equal amount of expenditure again.
The total expenditure includes an amount of 750$ million being spent merely on the bonuses given to the workers. Along with this, the cost of $390 million is spent on the reduction in the bonuses of all the associates of the company.
All time high cost:
The chief financial officer of the company, Brett Biggs, in a recent statement said that the company has already come up with a second round of bonuses. He announced it on Saturday, which gave great relief to the employees. According to him, the cost of sanitizing the stores will also be inured bu the company. This overall cost is an all-time high. The main reason is that considering the pandemic needs special cleanliness measures.
Amazon and its losses:
However, it’s not just Walmart that is bearing all these expenses. The biggest competitor of Walmart, Amazon, has also claimed increased expenses. According to the company, it had to deal with an additional expense of around four billion dollars. Global Pandemic is the reason behind it.
The reason behind the profit decline:
According to the statistics, Walmart was able to gain great profits during 2018-2019. However, with the global Pandemic hitting the world, it had to deal with a great loss in the profit. The major reason behind it is the health crisis, which has engulfed the whole World. People are not allowed to come out of the house due to Lockdown, and it has reduced the number of their shopping trips. Most of the people are opting for online shopping, which further reduces the profit margin for Walmart.
What the Future Holds?
The officials of the company say that it will take quite a lot of time for the company to recover. This is because even if the lock-down is lifted, people will find it difficult to trust and come out. They would not feel comfortable coming out of their houses. The virus scare will compel them to stay home for a long time. This will ultimately cause a great profit loss for the company.