Economy

Walmart Is Getting Destroyed in the Stock Market

Walmart is in the news again, and this time the retail titan lost $18 billion in market value after their stocks plunged more than 10 percent on Wednesday, Business Insider reports.

It’s the steepest decrease for the company in more than 15 years, and it’s largely due to the fact that they are investing in higher wages and training for their employees in response to the changing economy in the fall-out from the Recession.

Walmart chief financial officer Charles Holley, made a statement Wednesday that Walmart cut its profit outlook by approximately $1.5 billion. That's in addition to the $1.2 billion already spent on wage increases this year, according to the Los Angeles Times. He expects Walmart earnings to grow again by 2019, CNN Money reports.

Clay Bennett, Chattanooga Times Free Press

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The reason that funds are being diverted to employee pockets is because of changes that Walmart’s President and Chief Executive Officer (CEO) Doug McMillon announced several months ago.

McMillon released a video stating that the company planned to raise its lowest wage to $10 an hour by February 2016. The New York Daily News reported that the increase affects 500,000 of its 1.3 million U.S. workers.

"When we don't get it right, we adjust," McMillon said in Walmart's announcement video. "And it's clear to me that one of the highest priorities today must be an investment in you, our associates. We want to reward you for your service to our customers, and create clearer paths to progress within the company."

The company was under a lot of pressure from labor unions to give their employees a better wage, though the increase still isn't where advocates of fair wage would like it to be, according to Reuters.

Walmart’s Grease Fuel Truck

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For many workers, even the slight increase won't be enough.

"Desperation placed me at the mercy of Walmart, the very company I tried to get an education to get away from," Cantare Davunt wrote for ATTN: back in November. Davunt went to college and works as a customer service manager at Walmart.

"Walmart tells the public what they want to hear, but then expects us associates to deal with their lack of foresight and the backlash from customers. And all for what, so I can collect a paycheck and pay rent, and then survive on $6 dollars until the next paycheck? That’s not what I’d call American freedom; it’s not what I’d call prospering. It's no way to live."