Wal-Mart will cut back its stores and workers in Japan, according to a statement by the company’s Japanese subsidiary, Seiyu Ltd.
The move will close 20 stores, affecting 5 percent of the company’s 392 stores in the country; and 350 – or 6 percent – of Wal-Mart’s approximately 5,700 full-time employees in the country.
Wal-Mart took control of Seiyu, after a six-year investment in the Japanese company, in 2008.
The reason for the decision came because of falling revenues and a sixth-straight net loss in 2007. The company also plans to renovate 100 of its large store, and open smaller stores in areas not currently served by Seiyu.