Walmart plans to hire fewer employees this holiday season amid a backdrop of uncertain economic conditions.
The Arkansas-based retailer announced on Wednesday that plans to add 40,000 seasonal and full-time workers across the company before the holiday shopping season gets underway. This includes seasonal store associates, full-time, permanent truck drivers and customer care associates.
Its hiring initiative is significantly smaller compared to 2021 when it said it would hire 150,000 workers for the holiday season. However, current employees will have a chance to boost their earning power.
According to a blog post by Maren Waggoner, senior vice president of field people for Walmart U.S., the retailer will offer current employees an opportunity to work extra shifts first before filling them with new hires.
"As we prepare to serve customers this season, we’ll begin, as usual, by offering additional hours to current associates who want them," Waggoner said.
Afterward, the company said it will extend the "opportunity for those who want to earn extra money working on a temporary basis."
In the post, Walmart touted that its average hourly wage across the U.S. is more than $17 and that it offers a range of benefits including its Live Better U program, which covers 100% of the cost of college tuition and books.
Walmart said three quarters of its salaried managers begin as hourly associates.
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However, Walmart isn't the only company slashing its hiring this year.
Michaels Chief Operating Officer Joe Venezia told FOX Business earlier this month that the company deliberately decreased the number of seasonal hires this year to 15,000 in order to increase the number of hours available for seasonal employees.
This "means more earning potential for those hires," Venezia added.
Last year, the company tried to recruit more than 20,000 employees for the season.
Meanwhile, UPS is still seeking more than 100,000 employees as it braces for another busy package season. That's similar to the holiday seasons of 2021 and 2020.