To balance out the costs of raising wages and providing adequate training, Wal-Mart Stores Inc. has started cutting employees hours, according to Bloomberg. The company is in the process of spending $1 billion to properly provide their employees with the resources they need to do their jobs, but it seems that the expenditure isn't necessarily working in favor of their employees.
The company has come out saying that these aren't widespread cuts, and that only a small percentage of their stores are cutting back on employee hours, according to CNN Money.
Since Wal-Mart announced that it would be raising its employees' wages, profits have slipped, but the company assured the public that the shortened hours are unrelated to the falling profits and the rising cost of labor.
In response to the news, Wal-Mart gave this statement to Forbes: "This year, associates are getting more hours, better pay, and more predictable schedules than last year. We're pleased with the progress we are seeing and its impact on improving traffic and comp sales, as we reported during second quarter earnings. Managing hours is a routine part of running a sustainable operation, and in select number of stores, it requires keeping those hours to what was originally budgeted."
