Symbotic to Layoff 400 Employees after Merger with Walmart Unit

Deal News | May 03, 2025 | EIN

Symbotic to Layoff 400 Employees after Merger with Walmart Unit

Warehouse automation company Symbotic, based in Wilmington, is set to lay off 400 workers at the robotics unit previously acquired from Walmart. These layoffs, effective June 27, were reported in compliance with a federally mandated Worker Adjustment and Retraining Notification Act. Symbotic's CEO, Rick Cohen, explained that the decision comes after a post-merger evaluation aimed at optimizing the company's operational structure. Symbotic had acquired the Walmart unit, known for automating grocery order packing, for $200 million with contingent payments possibly reaching $350 million. The layoffs will occur amid a slowing Massachusetts economy and increased unemployment, with the layoff being part of Symbotic’s ongoing strategic adjustments. Previously, Walmart acquired the unit, Alert Innovation, from its founder John Lert for $400 million before Symbotic's purchase. Symbotic revenues rose by 52% last year, despite a net loss reduction to $14 million.

Sectors

  • Warehouse Automation
  • Retail

Geography

  • United States – The article involves US-based companies Symbotic, headquartered in Wilmington, Massachusetts, and Walmart.
  • Massachusetts – The layoffs are reported in Massachusetts and directly pertain to the state's economic conditions.

Industry

  • Warehouse Automation – The article centers on Symbotic and its warehouse automation technologies, highlighting the integration and associated layoffs at the Walmart robotics unit it acquired.
  • Retail – Walmart, a major retail company, is a central figure in the acquisition and integration of the grocery automation systems at their stores, aligning the article with the Retail sector.

Financials

  • $200 million – The upfront payment by Symbotic to acquire Walmart’s robotics unit.
  • $350 million – Potential future payments to Walmart related to the acquisition of the robotics unit.
  • $520 million – The payment Walmart agreed to make to Symbotic for implementing the automated system in its stores.
  • $1.8 billion – Symbotic's revenue in the previous year, indicative of growth despite net losses.
  • $14 million – Symbotic's net loss last year, reduced from $24 million.

Participants

NameRoleTypeDescription
SymboticBuyerCompanyA Wilmington-based warehouse automation company that acquired the robotics unit from Walmart and is laying off employees.
WalmartVendorCompanyThe retail giant that sold the robotics unit, initially named Alert Innovation, to Symbotic.
Rick CohenCEOPersonCEO of Symbotic, overseeing the merger and layoff decisions post-acquisition.
Alert InnovationTargetCompanyThe former name of the Walmart robotics unit acquired by Symbotic.
John LertFounderPersonThe original founder of Alert Innovation, which Walmart initially acquired before Symbotic.