Walmart is raising wages and issuing bonuses after tax reform
AP
- Walmart is raising wages and issuing one time bonuses to employees.
- The company's CEO said it's a move to try and stay competitive.
- Watch Walmart trade in real time here.
Walmart said it will raise the starting wage for its employees, and issue one time bonuses up to $1,000, as a direct result of the new US tax plan.
Shares of the retailer are trading 0.36% higher at $100.03 after the announcement.
Walmart is raising its starting hourly wage to $11, a move that will cost the company $300 million in addition to previously planned wage hikes. The company is also issuing bonuses based on seniority that will top out at $1,000. The bonuses are expected to cost another $400 million.
Walmart employs 2.3 million people worldwide, according to the company.
Issuing one time bonuses has been a popular response after US President Donald Trump signed his party's new tax plan into law. The new law cuts the corporate tax rate to 21%, down from 35%.
"Tax reform gives us the opportunity to be more competitive globally and to accelerate plans for the US," Doug McMillon, CEO of Walmart, said in a news release.
Walmart has gained 1.16% so far this year.
