Walmart is shaking up its advertising division, Walmart Connect, cutting about 1,500 corporate jobs while creating new positions to match its growth strategy. The retail giant announced these changes in an internal memo on May 21, 2025. This restructuring aims to simplify operations, speed up decision-making, and help Walmart adapt to new technology trends in the competitive retail media world.
Key Takeaways
- Walmart is eliminating approximately 1,500 corporate positions, including some in its Walmart Connect advertising division, while simultaneously creating new roles aligned with growth priorities.
- Walmart Connect reported impressive 31% year-over-year growth in Q1 FY26 and is expected to benefit from Walmart’s recent $2.3 billion acquisition of Vizio, a connected TV manufacturer.
- New leadership under Les Conway signals a strategic shift toward digital innovation and more competitive positioning against other retail media networks like Amazon and Target.
What’s Changing at Walmart Connect?
The restructuring isn’t just about cutting costs. It’s strategic. Walmart wants to “remove layers and complexity” according to the memo from Walmart U.S. President and CEO John Furner and Global Chief Technology Officer Suresh Kumar. They’re trimming fat. But they’re also building muscle.
New positions are being created specifically in high-growth areas. These include consumables and personal care industries, where Walmart Connect recently announced it was recruiting talent. The timing is intentional.
Leadership changes are part of this new direction too. Les Conway took over as head of Walmart Connect on May 5, bringing experience from WPP’s Mindshare Canada. His digital background hints at where Walmart sees its advertising future. The retail giant is positioning itself like a tech company that happens to sell groceries, not the other way around.
Why Marketers Should Pay Attention
Walmart Connect has become a major player in retail media. It competes directly with Amazon, Target, and Kroger for advertising dollars. The division’s 31% growth in Q1 FY26 shows it’s gaining momentum fast.
For advertisers, this restructuring means more sophisticated tools are coming. Think better targeting. More data insights. Expanded reach.
The Vizio acquisition is huge here. Walmart bought this connected TV manufacturer for $2.3 billion in December 2024. It wasn’t just to sell more TVs. This purchase gives Walmart Connect powerful new capabilities in streaming advertising – one of the hottest growth areas in digital marketing.
Non-endemic advertisers should take special note. These are brands that don’t sell through Walmart but offer complementary products. The restructuring hints at expanded opportunities for these advertisers to reach Walmart’s massive customer base.
The Bigger Picture
This restructuring doesn’t exist in a vacuum. It’s part of Walmart’s broader response to economic pressures. Rising costs hurt. Inflation persists. Geopolitical tensions affect tariffs.
Yet Walmart’s finding bright spots. Its U.S. e-commerce segment turned a profit for the first time in Q1 2025. That’s a milestone. Walmart Connect’s growth complements this success, becoming increasingly central to the company’s overall business strategy.
The focus on consolidating operations to key hubs like Bentonville, Arkansas shows Walmart is streamlining globally. It’s preparing for a future where retail and digital advertising become even more intertwined.
For marketers, the message is clear: Walmart Connect is transforming from a simple advertising platform into a comprehensive marketing ecosystem. The restructuring, leadership changes, and Vizio integration are all pieces of this larger strategy to challenge Amazon’s dominance in retail media while creating new opportunities for brands to connect with Walmart’s massive customer base across physical and digital touchpoints.
