Exclusive: Walmart, the largest private employer in the United States, is making significant changes by cutting hundreds of positions and shutting down one of its offices in North Carolina. The move aims to centralize its workforce in California and Arkansas, according to an internal memo obtained by FOX Business.

In the memo addressed to employees, Walmart’s Chief People Officer, Donna Morris, explained that the company is reducing roles and urging office-based staff in Hoboken, NJ, and other smaller offices to move to the newly established corporate headquarters in Bentonville, Arkansas, and the office in Sunnyvale, California.

Morris emphasized, “We are implementing these changes to integrate essential capabilities, promote efficiency, and enhance collaboration. As part of this evaluation, we have removed certain roles to streamline our operations.”

Walmart didn’t specify how many people will be affected, as the employees who are being asked to relocate will have at least a month to inform the company if they plan to move to the main hubs.

The decision announced on Tuesday is part of a broader relocation strategy unveiled in May 2024, when Walmart initiated the first phase of relocating employees by asking staff from offices in Dallas, Atlanta and Toronto to move to Walmart’s corporate headquarters in Bentonville, its Hoboken office or its California location. Any employees still working remotely at that time were also called back to the office.

Walmart began requiring workers to return to the office in February 2022, saying it boosts collaboration, innovation and faster work processes, while also strengthening company culture.

As the corporate world began to ditch remote work, Walmart constructed a new 350-acre campus in Bentonville, where it opened office buildings last month. The campus has 12 office buildings, along with amenity buildings, parking decks and surface lots. 

The company is also opening new office spaces in Sunnyvale and Bellevue, Wash., while expanding its office in Hoboken and its fashion office in New York City. 

“Our values and culture are strategic differentiators for us as a company, and they are fostered by being together,” Morris said in the memo. “We’ve already seen the benefits of having more teams working together in person, and today we are sharing another step that will help accelerate our momentum.” 

Morris said the company will help affected employees “navigate the path forward, including providing relocation support or severance.”