Wal-Mart dismisses 30 senior China executives in restructuring

Wal-Mart Stores Inc., the world's largest retailer, said it has dismissed about 30 senior executives in its China unit in an effort to "streamline and simplify" its business.

The departure of the executives, including directors and more senior staff, is "consistent with actions taken over the last several months," Wal-Mart's China spokesman Ray Bracy said in an e-mail reply to questions. A small number of the employees have mutually agreed to leave the business, he said, without elaborating.

The China move comes amid a management shakeup in the U.S., where Bentonville, Arkansas-based Wal-Mart announced the departure of its U.S. merchandising chief yesterday. The company also reappointed Scott Price as its Asia chief this month. The retailer has run into headwinds in China, where it faces stiff competition and food safety scandals such as fox DNA found in donkey meat.

Wal-Mart had said in October 2013 it plans to add as many as 110 stores over three years in China, while shutting some outlets and remodeling dozens more as it overhaul its business.

Among the executives asked to leave include vice presidents from Wal-Mart China and Sam's Club China, according to two Wal- Mart China employees, who asked not to be named for fear of retribution. The others were from divisions including merchandising and innovation, they said. Bracy declined to comment.

To contact Bloomberg News staff for this story: Liza Lin in Shanghai at llin15bloomberg.net To contact the editors responsible for this story: Stephanie Wong at swong139bloomberg.net Daryl Loo