Walmart's Strategy to Prepare America's Largest Private Workforce for an AI-Driven Future

How Walmart plans to prepare America's largest private workforce for an AI-driven future

BENTONVILLE, Ark (AP) -- As artificial intelligence and demographic changes reshape the U.S. job market, the nation's largest private employer is trying to identify the skills its workers and the broader labor force might need for the future. Walmart on Thursday hosted more than 300 workplace experts and representatives from other companies participating in the Skills-First Workforce Initiative, a project to develop and fill stable jobs based on what people know how to do instead of whether they attended college. The retailer already has launched its own employee training and certification programs to meet Walmart's need for truck drivers and maintenance technicians, two roles for which U.S. companies say they can't recruit fast enough as experienced tradespeople retire. Walmart says it plans to offer a similar AI skills program next year through a new collaboration with OpenAI, the company behind ChatGPT. The Associated Press sat down with Walmart CEO Doug McMillon at the company's sprawling headquarters in Bentonville, Arkansas, to talk about AI and the American workforce. The interview has been edited for clarity and length. MCMILLON: I would say pretty much a steady state. Turnover numbers are coming down. I'm remembering what happened during the pandemic and relative to that experience, things feel much more stable now. I think the pace of change in the employment market is just smaller and easier to manage. MCMILLON: We continue to invest in wages. So I think that's helping some, and that process will continue. As it relates to AI and the future of employment, I think for the most part, our folks are enthusiastic about it because they've seen new tools that they're receiving that are making their jobs better. That's helping them take fewer steps. And our sales are growing so much. I think people are optimistic about the future of what their life can look like. MCMILLON: I think no one knows how this is going to play out exactly. And the way it feels to me is that basically every job gets changed. And I think the best way to think about it is getting "plussed up." So how can I lean in the role that I have, regardless what that role is, to adopt new tools, leverage them and make things better than they would've otherwise been? As I look across our company, we have everything from store associates to supply chain associates. Of the 2.1 million people (globally), something less than 75,000 of them are home office jobs. All the other ones are working in a store, a club, a distribution center. And I think those jobs change more gradually. We are still going to want to serve customers and members with people. The change as it relates to the home office jobs probably happens faster. MCMILLON: I don't know there'll be a moment where we all have clarity. I think the way for all of us to approach it, especially here at Walmart, is just in a very transparent, honest, human, straightforward way, talking to people real time about what we're learning and what we're doing and why we're doing it. That's the way that we plan to lead through this. MCMILLON: One of the biggest areas of change in the last decade is related to associates that work in our stores, picking orders for delivery and pickup for our customers. And we have something north of 200,000 people doing that job, and yet we have about the same (total) number of people working in Walmart U.S. How did we do that? Other tasks and other jobs changed, which enabled us to create new jobs that paid more and have fewer of the older jobs that went away. I hope what happens as we lead through this is that there will be pluses and minuses, but the net ends up being even more people because we have more ideas of how to grow. MCMILLON: The first thing that comes to mind is store managers. Being a store manager is such a great job and such a challenging job. And it's a job that pays well, and it pays well for a reason. You're interacting with the community with large numbers of people. You have a large number of associates. You have big sales numbers to deliver. And those skills that the store manager has are both human and technical. I think the skills that we have as human beings are valuable. They always have been, and that'll be even more true in the future. MCMILLON: To some degree, it's a lack of awareness. I think most Americans probably don't know what a tech makes that helps take care of our stores and clubs and that we can help them learn how to be a tech. The same thing's true for our drivers. So we have a need to get the word out so that people know there are some great jobs. MCMILLON: We've been able to do that so far, and I expect that we'll continue to find great people that want to join the company and our turnover rates are down, which is helpful. MCMILLON: I think as we all work to learn and navigate the future towards a world where AI fulfills its promise, the best way to do that is to work together and to share information and learn together. It'll speed up our ability to get ahead of this so that we can do a better job of setting our associates up for success. And that's ultimately what we're trying to do. The change that's happening in the world is going to happen. Our choice is to lean in, learn (and) help lead so there are better outcomes for everybody involved.

Walmart CEO explains what the most coveted skills are and points to store managers | Fortune

As artificial intelligence and demographic changes reshape the U.S. job market, the nation's largest private employer is trying to identify the skills its workers and the broader labor force might need for the future. Walmart on Thursday hosted more than 300 workplace experts and representatives from other companies participating in the Skills-First Workforce Initiative, a project to develop and fill stable jobs based on what people know how to do instead of whether they attended college. The retailer already has launched its own employee trainingand certification programs to meet Walmart's need for truck drivers and maintenance technicians, two roles for which U.S. companies say they can't recruit fast enough as experienced tradespeople retire. Walmart says it plans to offer a similar AI skills program next year through a new collaboration with OpenAI, the company behind ChatGPT. The Associated Press sat down with Walmart CEO Doug McMillon at the company's sprawling headquarters in Bentonville, Arkansas, to talk about AI and the American workforce. The interview has been edited for clarity and length. MCMILLON: I would say pretty much a steady state. Turnover numbers are coming down. I'm remembering what happened during the pandemic and relative to that experience, things feel much more stable now. I think the pace of change in the employment market is just smaller and easier to manage. MCMILLON: We continue to invest in wages. So I think that's helping some, and that process will continue. As it relates to AI and the future of employment, I think for the most part, our folks are enthusiastic about it because they've seen new tools that they're receiving that are making their jobs better. That's helping them take fewer steps. And our sales are growing so much. I think people are optimistic about the future of what their life can look like. MCMILLON: I think no one knows how this is going to play out exactly. And the way it feels to me is that basically every job gets changed. And I think the best way to think about it is getting "plussed up." So how can I lean in the role that I have, regardless what that role is, to adopt new tools, leverage them and make things better than they would've otherwise been? As I look across our company, we have everything from store associates to supply chain associates. Of the 2.1 million people (globally), something less than 75,000 of them are home office jobs. All the other ones are working in a store, a club, a distribution center. And I think those jobs change more gradually. We are still going to want to serve customers and members with people. The change as it relates to the home office jobs probably happens faster. MCMILLON: I don't know there'll be a moment where we all have clarity. I think the way for all of us to approach it, especially here at Walmart, is just in a very transparent, honest, human, straightforward way, talking to people real time about what we're learning and what we're doing and why we're doing it. That's the way that we plan to lead through this. MCMILLON: One of the biggest areas of change in the last decade is related to associates that work in our stores, picking orders for delivery and pickup for our customers. And we have something north of 200,000 people doing that job, and yet we have about the same (total) number of people working in Walmart U.S. How did we do that? Other tasks and other jobs changed, which enabled us to create new jobs that paid more and have fewer of the older jobs that went away. I hope what happens as we lead through this is that there will be pluses and minuses, but the net ends up being even more people because we have more ideas of how to grow. MCMILLON: The first thing that comes to mind is store managers. Being a store manager is such a great job and such a challenging job. And it's a job that pays well, and it pays well for a reason. You're interacting with the community with large numbers of people. You have a large number of associates. You have big sales numbers to deliver. And those skills that the store manager has are both human and technical. I think the skills that we have as human beings are valuable. They always have been, and that'll be even more true in the future. MCMILLON: To some degree, it's a lack of awareness. I think most Americans probably don't know what a tech makes that helps take care of our stores and clubs and that we can help them learn how to be a tech. The same thing's true for our drivers. So we have a need to get the word out so that people know there are some great jobs. MCMILLON: We've been able to do that so far, and I expect that we'll continue to find great people that want to join the company and our turnover rates are down, which is helpful. MCMILLON: I think as we all work to learn and navigate the future towards a world where AI fulfills its promise, the best way to do that is to work together and to share information and learn together. It'll speed up our ability to get ahead of this so that we can do a better job of setting our associates up for success. And that's ultimately what we're trying to do. The change that's happening in the world is going to happen. Our choice is to lean in, learn (and) help lead so there are better outcomes for everybody involved.

Walmart CEO wants 'everybody to make it to the other side' and the retail giant will keep headcount flat for now even as AI changes every job | Fortune

CEOs aren't shying away from what labor market experts have been saying for months: AI is transforming the workforce. From bankers to consulting firms, business leaders are restructuring rapidly as AI adoption becomes mission critical. CEOs of global companies expect AI investments to more than double in two years, and 61% are actively adopting AI agents at scale, according to a May IBM study. "It's very clear that AI is going to change literally every job," Walmart CEO Doug McMillon said this week during a workforce conference with other business execs, The Wall Street Journal reported Friday. And AI has already changed the global retailer, which has developed chat bots to help customers, suppliers, and merchants. The company has also created new roles like an "agent developer," whose job description is to build AI tools to help automate workflow throughout the company. Yet as AI automates some tasks for Walmart workers, that won't translate to mass layoffs. "Our goal is to create the opportunity for everybody to make it to the other side," McMillon said. Some jobs and tasks at Walmart will be eliminated, but others will be added, he added. Walmart plans to maintain a head count of around 2.1 million workers across the world over the next three years, though the mix of these jobs are expected to change, Walmart's chief people officer Donna Morris said, according to The Journal. To help determine how to train and prepare workers, the company is tracking job types to see which increase, decrease and hold steady. The headcount retention is a stark distinction from other corporate messaging recently. Accenture CEO Julie Sweet said Thursday that rapid AI adoption drove layoffs this year and warned that more exits are possible where reskilling employees is not viable. And in May, Anthropic CEO Dario Amodei said AI could wipe out roughly half of all entry-level white-collar jobs. The cuts could come within five years and cause unemployment to spike as high as 20%, he added. But OpenAI CEO Sam Altman said last month he's envious of young people because in 10 years' time, college graduates will be working "some completely new, exciting, super well-paid" job in space, and current early-career work will look "boring" by comparison. It's unclear how AI will change Walmart's labor force in three years. Chief people officer Morris said company leaders have to do their "homework" to find those answers. But according to Walmart's CEO, the company will continue relying on face-to-face interaction even as it leans more on AI. In January, tech company Symbotic announced Walmart would pay it $520 million to build out an AI-enabled robotics platform to improve shopping convenience via accelerated online pickup and delivery at stores. Other vendors have also offered robot workers to the company. Yet "until we're serving humanoid robots and they have the ability to spend money, we're serving people," McMillon said. "We are going to put people in front of people."

How Walmart plans to prepare America's largest private workforce for an AI-driven future

BENTONVILLE, Ark -- As artificial intelligence and demographic changes reshape the U.S. job market, the nation's largest private employer is trying to identify the skills its workers and the broader labor force might need for the future. Walmart on Thursday hosted more than 300 workplace experts and representatives from other companies participating in the Skills-First Workforce Initiative, a project to develop and fill stable jobs based on what people know how to do instead of whether they attended college. The retailer already has launched its own employee training and certification programs to meet Walmart's need for truck drivers and maintenance technicians, two roles for which U.S. companies say they can't recruit fast enough as experienced tradespeople retire. Walmart says it plans to offer a similar AI skills program next year through a new collaboration with OpenAI, the company behind ChatGPT. The Associated Press sat down with Walmart CEO Doug McMillon at the company's sprawling headquarters in Bentonville, Arkansas, to talk about AI and the American workforce. The interview has been edited for clarity and length. MCMILLON: I would say pretty much a steady state. Turnover numbers are coming down. I'm remembering what happened during the pandemic and relative to that experience, things feel much more stable now. I think the pace of change in the employment market is just smaller and easier to manage. MCMILLON: We continue to invest in wages. So I think that's helping some, and that process will continue. As it relates to AI and the future of employment, I think for the most part, our folks are enthusiastic about it because they've seen new tools that they're receiving that are making their jobs better. That's helping them take fewer steps. And our sales are growing so much. I think people are optimistic about the future of what their life can look like. MCMILLON: I think no one knows how this is going to play out exactly. And the way it feels to me is that basically every job gets changed. And I think the best way to think about it is getting "plussed up." So how can I lean in the role that I have, regardless what that role is, to adopt new tools, leverage them and make things better than they would've otherwise been? As I look across our company, we have everything from store associates to supply chain associates. Of the 2.1 million people (globally), something less than 75,000 of them are home office jobs. All the other ones are working in a store, a club, a distribution center. And I think those jobs change more gradually. We are still going to want to serve customers and members with people. The change as it relates to the home office jobs probably happens faster. MCMILLON: I don't know there'll be a moment where we all have clarity. I think the way for all of us to approach it, especially here at Walmart, is just in a very transparent, honest, human, straightforward way, talking to people real time about what we're learning and what we're doing and why we're doing it. That's the way that we plan to lead through this. MCMILLON: One of the biggest areas of change in the last decade is related to associates that work in our stores, picking orders for delivery and pickup for our customers. And we have something north of 200,000 people doing that job, and yet we have about the same (total) number of people working in Walmart U.S. How did we do that? Other tasks and other jobs changed, which enabled us to create new jobs that paid more and have fewer of the older jobs that went away. I hope what happens as we lead through this is that there will be pluses and minuses, but the net ends up being even more people because we have more ideas of how to grow. MCMILLON: The first thing that comes to mind is store managers. Being a store manager is such a great job and such a challenging job. And it's a job that pays well, and it pays well for a reason. You're interacting with the community with large numbers of people. You have a large number of associates. You have big sales numbers to deliver. And those skills that the store manager has are both human and technical. I think the skills that we have as human beings are valuable. They always have been, and that'll be even more true in the future. MCMILLON: To some degree, it's a lack of awareness. I think most Americans probably don't know what a tech makes that helps take care of our stores and clubs and that we can help them learn how to be a tech. The same thing's true for our drivers. So we have a need to get the word out so that people know there are some great jobs. MCMILLON: We've been able to do that so far, and I expect that we'll continue to find great people that want to join the company and our turnover rates are down, which is helpful. MCMILLON: I think as we all work to learn and navigate the future towards a world where AI fulfills its promise, the best way to do that is to work together and to share information and learn together. It'll speed up our ability to get ahead of this so that we can do a better job of setting our associates up for success. And that's ultimately what we're trying to do. The change that's happening in the world is going to happen. Our choice is to lean in, learn (and) help lead so there are better outcomes for everybody involved.

How Walmart plans to prepare America's largest private workforce for an AI-driven future

BENTONVILLE, Ark (AP) -- As artificial intelligence and demographic changes reshape the U.S. job market, the nation's largest private employer is trying to identify the skills its workers and the broader labor force might need for the future. Walmart on Thursday hosted more than 300 workplace experts and representatives from other companies participating in the Skills-First Workforce Initiative, a project to develop and fill stable jobs based on what people know how to do instead of whether they attended college. The retailer already has launched its own employee training and certification programs to meet Walmart's need for truck drivers and maintenance technicians, two roles for which U.S. companies say they can't recruit fast enough as experienced tradespeople retire. Walmart says it plans to offer a similar AI skills program next year through a new collaboration with OpenAI, the company behind ChatGPT. The Associated Press sat down with Walmart CEO Doug McMillon at the company's sprawling headquarters in Bentonville, Arkansas, to talk about AI and the American workforce. The interview has been edited for clarity and length. AP: What's your view of the overall health of the job market, given the uncertainty about tariffs and the economy? MCMILLON: I would say pretty much a steady state. Turnover numbers are coming down. I'm remembering what happened during the pandemic and relative to that experience, things feel much more stable now. I think the pace of change in the employment market is just smaller and easier to manage. AP: What are the biggest factors affecting Walmart workers? Fear of AI, or their paychecks not keeping pace with inflation? MCMILLON: We continue to invest in wages. So I think that's helping some, and that process will continue. As it relates to AI and the future of employment, I think for the most part, our folks are enthusiastic about it because they've seen new tools that they're receiving that are making their jobs better. That's helping them take fewer steps. And our sales are growing so much. I think people are optimistic about the future of what their life can look like. AP: Which jobs might be eliminated or added because of AI? MCMILLON: I think no one knows how this is going to play out exactly. And the way it feels to me is that basically every job gets changed. And I think the best way to think about it is getting "plussed up." So how can I lean in the role that I have, regardless what that role is, to adopt new tools, leverage them and make things better than they would've otherwise been? As I look across our company, we have everything from store associates to supply chain associates. Of the 2.1 million people (globally), something less than 75,000 of them are home office jobs. All the other ones are working in a store, a club, a distribution center. And I think those jobs change more gradually. We are still going to want to serve customers and members with people. The change as it relates to the home office jobs probably happens faster. AP: When will you have a clearer idea? MCMILLON: I don't know there'll be a moment where we all have clarity. I think the way for all of us to approach it, especially here at Walmart, is just in a very transparent, honest, human, straightforward way, talking to people real time about what we're learning and what we're doing and why we're doing it. That's the way that we plan to lead through this. AP: Do you think AI will result in fewer workers at Walmart? MCMILLON: One of the biggest areas of change in the last decade is related to associates that work in our stores, picking orders for delivery and pickup for our customers. And we have something north of 200,000 people doing that job, and yet we have about the same (total) number of people working in Walmart U.S. How did we do that? Other tasks and other jobs changed, which enabled us to create new jobs that paid more and have fewer of the older jobs that went away. I hope what happens as we lead through this is that there will be pluses and minuses, but the net ends up being even more people because we have more ideas of how to grow. AP: What do you think are the most coveted skills? MCMILLON: The first thing that comes to mind is store managers. Being a store manager is such a great job and such a challenging job. And it's a job that pays well, and it pays well for a reason. You're interacting with the community with large numbers of people. You have a large number of associates. You have big sales numbers to deliver. And those skills that the store manager has are both human and technical. I think the skills that we have as human beings are valuable. They always have been, and that'll be even more true in the future. AP: Why are there shortages in roles like maintenance technicians? MCMILLON: To some degree, it's a lack of awareness. I think most Americans probably don't know what a tech makes that helps take care of our stores and clubs and that we can help them learn how to be a tech. The same thing's true for our drivers. So we have a need to get the word out so that people know there are some great jobs. AP: Do you think Walmart will be able to fill such gaps as the immigrant pool shrinks? MCMILLON: We've been able to do that so far, and I expect that we'll continue to find great people that want to join the company and our turnover rates are down, which is helpful. AP: How critical is this initiative focused on skills-based hiring? MCMILLON: I think as we all work to learn and navigate the future towards a world where AI fulfills its promise, the best way to do that is to work together and to share information and learn together. It'll speed up our ability to get ahead of this so that we can do a better job of setting our associates up for success. And that's ultimately what we're trying to do. The change that's happening in the world is going to happen. Our choice is to lean in, learn (and) help lead so there are better outcomes for everybody involved.

How Walmart Plans to Prepare America's Largest Private Workforce for an AI-Driven Future

BENTONVILLE, Ark (AP) -- As artificial intelligence and demographic changes reshape the U.S. job market, the nation's largest private employer is trying to identify the skills its workers and the broader labor force might need for the future. Walmart on Thursday hosted more than 300 workplace experts and representatives from other companies participating in the Skills-First Workforce Initiative, a project to develop and fill stable jobs based on what people know how to do instead of whether they attended college. The retailer already has launched its own employee training and certification programs to meet Walmart's need for truck drivers and maintenance technicians, two roles for which U.S. companies say they can't recruit fast enough as experienced tradespeople retire. Walmart says it plans to offer a similar AI skills program next year through a new collaboration with OpenAI, the company behind ChatGPT. The Associated Press sat down with Walmart CEO Doug McMillon at the company's sprawling headquarters in Bentonville, Arkansas, to talk about AI and the American workforce. The interview has been edited for clarity and length. AP: What's your view of the overall health of the job market, given the uncertainty about tariffs and the economy? MCMILLON: I would say pretty much a steady state. Turnover numbers are coming down. I'm remembering what happened during the pandemic and relative to that experience, things feel much more stable now. I think the pace of change in the employment market is just smaller and easier to manage. AP: What are the biggest factors affecting Walmart workers? Fear of AI, or their paychecks not keeping pace with inflation? MCMILLON: We continue to invest in wages. So I think that's helping some, and that process will continue. As it relates to AI and the future of employment, I think for the most part, our folks are enthusiastic about it because they've seen new tools that they're receiving that are making their jobs better. That's helping them take fewer steps. And our sales are growing so much. I think people are optimistic about the future of what their life can look like. AP: Which jobs might be eliminated or added because of AI? MCMILLON: I think no one knows how this is going to play out exactly. And the way it feels to me is that basically every job gets changed. And I think the best way to think about it is getting "plussed up." So how can I lean in the role that I have, regardless what that role is, to adopt new tools, leverage them and make things better than they would've otherwise been? As I look across our company, we have everything from store associates to supply chain associates. Of the 2.1 million people (globally), something less than 75,000 of them are home office jobs. All the other ones are working in a store, a club, a distribution center. And I think those jobs change more gradually. We are still going to want to serve customers and members with people. The change as it relates to the home office jobs probably happens faster. AP: When will you have a clearer idea? MCMILLON: I don't know there'll be a moment where we all have clarity. I think the way for all of us to approach it, especially here at Walmart, is just in a very transparent, honest, human, straightforward way, talking to people real time about what we're learning and what we're doing and why we're doing it. That's the way that we plan to lead through this. AP: Do you think AI will result in fewer workers at Walmart? MCMILLON: One of the biggest areas of change in the last decade is related to associates that work in our stores, picking orders for delivery and pickup for our customers. And we have something north of 200,000 people doing that job, and yet we have about the same (total) number of people working in Walmart U.S. How did we do that? Other tasks and other jobs changed, which enabled us to create new jobs that paid more and have fewer of the older jobs that went away. I hope what happens as we lead through this is that there will be pluses and minuses, but the net ends up being even more people because we have more ideas of how to grow. AP: What do you think are the most coveted skills? MCMILLON: The first thing that comes to mind is store managers. Being a store manager is such a great job and such a challenging job. And it's a job that pays well, and it pays well for a reason. You're interacting with the community with large numbers of people. You have a large number of associates. You have big sales numbers to deliver. And those skills that the store manager has are both human and technical. I think the skills that we have as human beings are valuable. They always have been, and that'll be even more true in the future. AP: Why are there shortages in roles like maintenance technicians? MCMILLON: To some degree, it's a lack of awareness. I think most Americans probably don't know what a tech makes that helps take care of our stores and clubs and that we can help them learn how to be a tech. The same thing's true for our drivers. So we have a need to get the word out so that people know there are some great jobs. AP: Do you think Walmart will be able to fill such gaps as the immigrant pool shrinks? MCMILLON: We've been able to do that so far, and I expect that we'll continue to find great people that want to join the company and our turnover rates are down, which is helpful. AP: How critical is this initiative focused on skills-based hiring? MCMILLON: I think as we all work to learn and navigate the future towards a world where AI fulfills its promise, the best way to do that is to work together and to share information and learn together. It'll speed up our ability to get ahead of this so that we can do a better job of setting our associates up for success. And that's ultimately what we're trying to do. The change that's happening in the world is going to happen. Our choice is to lean in, learn (and) help lead so there are better outcomes for everybody involved.

How Walmart plans to prepare America's largest private workforce for an AI-driven future - The Economic Times

Walmart on Thursday hosted more than 300 workplace experts and representatives from other companies participating in the Skills-First Workforce Initiative, a project to develop and fill stable jobs based on what people know how to do instead of whether they attended college.As artificial intelligence and demographic changes reshape the U.S. job market, the nation's largest private employer is trying to identify the skills its workers and the broader labor force might need for the future. Walmart on Thursday hosted more than 300 workplace experts and representatives from other companies participating in the Skills-First Workforce Initiative, a project to develop and fill stable jobs based on what people know how to do instead of whether they attended college. The retailer already has launched its own employee training and certification programs to meet Walmart's need for truck drivers and maintenance technicians, two roles for which U.S. companies say they can't recruit fast enough as experienced tradespeople retire. Walmart says it plans to offer a similar AI skills program next year through a new collaboration with OpenAI, the company behind ChatGPT. The Associated Press sat down with Walmart CEO Doug McMillon at the company's sprawling headquarters in Bentonville, Arkansas, to talk about AI and the American workforce. The interview has been edited for clarity and length. AP: What's your view of the overall health of the job market, given the uncertainty about tariffs and the economy? MCMILLON: I would say pretty much a steady state. Turnover numbers are coming down. I'm remembering what happened during the pandemic and relative to that experience, things feel much more stable now. I think the pace of change in the employment market is just smaller and easier to manage. AP: What are the biggest factors affecting Walmart workers? Fear of AI, or their paychecks not keeping pace with inflation? MCMILLON: We continue to invest in wages. So I think that's helping some, and that process will continue. As it relates to AI and the future of employment, I think for the most part, our folks are enthusiastic about it because they've seen new tools that they're receiving that are making their jobs better. That's helping them take fewer steps. And our sales are growing so much. I think people are optimistic about the future of what their life can look like. AP: Which jobs might be eliminated or added because of AI? MCMILLON: I think no one knows how this is going to play out exactly. And the way it feels to me is that basically every job gets changed. And I think the best way to think about it is getting "plussed up." So how can I lean in the role that I have, regardless what that role is, to adopt new tools, leverage them and make things better than they would've otherwise been? As I look across our company, we have everything from store associates to supply chain associates. Of the 2.1 million people (globally), something less than 75,000 of them are home office jobs. All the other ones are working in a store, a club, a distribution center. And I think those jobs change more gradually. We are still going to want to serve customers and members with people. The change as it relates to the home office jobs probably happens faster. AP: When will you have a clearer idea? MCMILLON: I don't know there'll be a moment where we all have clarity. I think the way for all of us to approach it, especially here at Walmart, is just in a very transparent, honest, human, straightforward way, talking to people real time about what we're learning and what we're doing and why we're doing it. That's the way that we plan to lead through this. AP: Do you think AI will result in fewer workers at Walmart? MCMILLON: One of the biggest areas of change in the last decade is related to associates that work in our stores, picking orders for delivery and pickup for our customers. And we have something north of 200,000 people doing that job, and yet we have about the same (total) number of people working in Walmart U.S. How did we do that? Other tasks and other jobs changed, which enabled us to create new jobs that paid more and have fewer of the older jobs that went away. I hope what happens as we lead through this is that there will be pluses and minuses, but the net ends up being even more people because we have more ideas of how to grow. AP: What do you think are the most coveted skills? MCMILLON: The first thing that comes to mind is store managers. Being a store manager is such a great job and such a challenging job. And it's a job that pays well, and it pays well for a reason. You're interacting with the community with large numbers of people. You have a large number of associates. You have big sales numbers to deliver. And those skills that the store manager has are both human and technical. I think the skills that we have as human beings are valuable. They always have been, and that'll be even more true in the future. AP: Why are there shortages in roles like maintenance technicians? MCMILLON: To some degree, it's a lack of awareness. I think most Americans probably don't know what a tech makes that helps take care of our stores and clubs and that we can help them learn how to be a tech. The same thing's true for our drivers. So we have a need to get the word out so that people know there are some great jobs. AP: Do you think Walmart will be able to fill such gaps as the immigrant pool shrinks? MCMILLON: We've been able to do that so far, and I expect that we'll continue to find great people that want to join the company and our turnover rates are down, which is helpful. AP: How critical is this initiative focused on skills-based hiring? MCMILLON: I think as we all work to learn and navigate the future towards a world where AI fulfills its promise, the best way to do that is to work together and to share information and learn together. It'll speed up our ability to get ahead of this so that we can do a better job of setting our associates up for success. And that's ultimately what we're trying to do. The change that's happening in the world is going to happen. Our choice is to lean in, learn (and) help lead so there are better outcomes for everybody involved.

Walmart warns AI will reshape every job, pledges to retrain workers as roles evolve (WMT:NYSE)

Create a free Seeking Alpha account to access breaking news and valuable research tools " Walmart (NYSE:WMT), the nation's biggest private employer, is preparing for sweeping workforce changes driven by artificial intelligence. Chief Executive Doug McMillon said that AI will alter "virtually every job," acknowledging that some roles will disappear while new ones are created, The Wall Street Journal reported Saturday. Executives are mapping out which positions may shrink expand, or remain steady to guide retraining efforts. "Our goal is to create the opportunity for everybody to make it to the other side," McMillon said at a workforce conference in Bentonville, Arkansas. For now, the retailer expects its global head count of roughly 2.1 million employees to stay flat over the next three years, even as revenue grows. But the makeup of those jobs will shift, said Chief People Officer Donna Morris. Walmart (NYSE:WMT) already has rolled out AI-powered chatbots for customers, suppliers and staff, and created a new "agent builder" role to design such tools. While automation has cut some warehouse jobs, the company has added workers in delivery, in-store maintenance, and trucking. McMillon emphasized that people will continue to serve customers directly, rejecting the idea of humanoid robots in stores. The conversation reflects a broader corporate reckoning with AI's impact on employment. Leaders at companies from Ford (F) to J.P. Morgan (JPM) have forecast significant job losses, while others, including Accenture (ACN) and Blackstone (BX), are stressing retraining and resilience. OpenAI economist Ronnie Chatterji told the conference that AI's effects will accelerate in the next 18 to 36 months. Despite anxiety, some executives argue the labor market can absorb the disruption. Blackstone's (BX) Joe Baratta noted that past technological shifts have ultimately created new opportunities, the Journal reported. More on Walmart Today's chaos. Tomorrow's opportunity Seeking Alpha helps you make sense of the headlines. New! Get unlimited breaking stock news for free -- so you can stay on track for a stronger financial future.

How Walmart plans to prepare America's largest private workforce for an AI-driven future

BENTONVILLE, Ark (AP) -- As artificial intelligence and demographic changes reshape the U.S. job market, the nation's largest private employer is trying to identify the skills its workers and the broader labor force might need for the future. Walmart on Thursday hosted more than 300 workplace experts and representatives from other companies participating in the Skills-First Workforce Initiative, a project to develop and fill stable jobs based on what people know how to do instead of whether they attended college. The retailer already has launched its own employee training and certification programs to meet Walmart's need for truck drivers and maintenance technicians, two roles for which U.S. companies say they can't recruit fast enough as experienced tradespeople retire. Walmart says it plans to offer a similar AI skills program next year through a new collaboration with OpenAI, the company behind ChatGPT. The Associated Press sat down with Walmart CEO Doug McMillon at the company's sprawling headquarters in Bentonville, Arkansas, to talk about AI and the American workforce. The interview has been edited for clarity and length. AP: What's your view of the overall health of the job market, given the uncertainty about tariffs and the economy? MCMILLON: I would say pretty much a steady state. Turnover numbers are coming down. I'm remembering what happened during the pandemic and relative to that experience, things feel much more stable now. I think the pace of change in the employment market is just smaller and easier to manage. AP: What are the biggest factors affecting Walmart workers? Fear of AI, or their paychecks not keeping pace with inflation? MCMILLON: We continue to invest in wages. So I think that's helping some, and that process will continue. As it relates to AI and the future of employment, I think for the most part, our folks are enthusiastic about it because they've seen new tools that they're receiving that are making their jobs better. That's helping them take fewer steps. And our sales are growing so much. I think people are optimistic about the future of what their life can look like. AP: Which jobs might be eliminated or added because of AI? MCMILLON: I think no one knows how this is going to play out exactly. And the way it feels to me is that basically every job gets changed. And I think the best way to think about it is getting "plussed up." So how can I lean in the role that I have, regardless what that role is, to adopt new tools, leverage them and make things better than they would've otherwise been? As I look across our company, we have everything from store associates to supply chain associates. Of the 2.1 million people (globally), something less than 75,000 of them are home office jobs. All the other ones are working in a store, a club, a distribution center. And I think those jobs change more gradually. We are still going to want to serve customers and members with people. The change as it relates to the home office jobs probably happens faster. AP: When will you have a clearer idea? MCMILLON: I don't know there'll be a moment where we all have clarity. I think the way for all of us to approach it, especially here at Walmart, is just in a very transparent, honest, human, straightforward way, talking to people real time about what we're learning and what we're doing and why we're doing it. That's the way that we plan to lead through this. AP: Do you think AI will result in fewer workers at Walmart? MCMILLON: One of the biggest areas of change in the last decade is related to associates that work in our stores, picking orders for delivery and pickup for our customers. And we have something north of 200,000 people doing that job, and yet we have about the same (total) number of people working in Walmart U.S. How did we do that? Other tasks and other jobs changed, which enabled us to create new jobs that paid more and have fewer of the older jobs that went away. I hope what happens as we lead through this is that there will be pluses and minuses, but the net ends up being even more people because we have more ideas of how to grow. AP: What do you think are the most coveted skills? MCMILLON: The first thing that comes to mind is store managers. Being a store manager is such a great job and such a challenging job. And it's a job that pays well, and it pays well for a reason. You're interacting with the community with large numbers of people. You have a large number of associates. You have big sales numbers to deliver. And those skills that the store manager has are both human and technical. I think the skills that we have as human beings are valuable. They always have been, and that'll be even more true in the future. AP: Why are there shortages in roles like maintenance technicians? MCMILLON: To some degree, it's a lack of awareness. I think most Americans probably don't know what a tech makes that helps take care of our stores and clubs and that we can help them learn how to be a tech. The same thing's true for our drivers. So we have a need to get the word out so that people know there are some great jobs. AP: Do you think Walmart will be able to fill such gaps as the immigrant pool shrinks? MCMILLON: We've been able to do that so far, and I expect that we'll continue to find great people that want to join the company and our turnover rates are down, which is helpful. AP: How critical is this initiative focused on skills-based hiring? MCMILLON: I think as we all work to learn and navigate the future towards a world where AI fulfills its promise, the best way to do that is to work together and to share information and learn together. It'll speed up our ability to get ahead of this so that we can do a better job of setting our associates up for success. And that's ultimately what we're trying to do. The change that's happening in the world is going to happen. Our choice is to lean in, learn (and) help lead so there are better outcomes for everybody involved.