Wal-Mart Stores Inc. Chief Information Officer Karenann Terrell is leaving the company.
Chief Executive Officer Doug McMillon informed employees of Terrell's departure in an internal memo. McMillon did not name Terrell's replacement but said she will remain with the company until Feb. 24 to "ensure a smooth transition."
Terrell has been with Wal-Mart for six years, beginning as executive vice president of information systems. She was promoted to chief information officer in 2012 and has remained in the role for four years.
"Her charter was clear -- modernize our retail technology team and power our store and club businesses by enabling a seamless shopping experience at scale," McMillon said in the memo. "Under her leadership, we have made great strides."
McMillon credited Terrell for her work, which led to technological applications such as self-checkout and wireless access in Wal-Mart stores and Sam's Clubs. He also said Terrell partnered with the e-commerce team to introduce services such as Walmart Pay, Scan & Go and online grocery.
Terrell is the second executive whose departure McMillon has revealed this month as Wal-Mart moves closer to the end of its fiscal year on Jan. 31.
Sam's Club Chief Executive Officer Rosalind Brewer is leaving the company as well after five years as head of the warehouse division. Brewer, who will retire Feb. 1, will be replaced by Sam's Club Chief Merchandising Officer John Furner.
Wal-Mart also plans to eliminate hundreds of jobs at the corporate level by the end of the month in ongoing efforts to improve efficiency and protect profits. The job cuts are expected to affect several departments, including human resources in Bentonville and in regional offices, according to the Wall Street Journal.
Wal-Mart has not confirmed any job cuts, but spokesman Randy Hargrove said Tuesday that the company is "always looking for ways to operate more efficiently and effectively."
On Wednesday, California-based Workday Inc. announced in a U.S. Securities and Exchange Commission filing that Wal-Mart had purchased a subscription to its Human Capital Management, Recruiting, Learning and Planning software.
A spokesman for the company, which was founded in 2005 and makes cloud-based human resources and finance software, declined to disclose the terms of the deal. But shares of Workday's stock closed trading Wednesday at $81.70, up $7.35. Other Workday clients include Adobe, Bank of America, Dell and IBM, according to the company.
Edward Jones retail analyst Brian Yarbrough said it's not clear how the software will be used by Wal-Mart, but added that "these systems can help replace physical people."
"The software is going to be a lot cheaper over time than people," Yarbrough said. "It's going to make it more efficient and the process probably more efficient."
Business on 01/12/2017