` Walmart Issues Ultimatum: 253 Employees Must Transfer Or Be Terminated Immediately - Ruckus Factory

Walmart Issues Ultimatum: 253 Employees Must Transfer Or Be Terminated Immediately

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Walmart will close its general store at 1900 S. 314th Street in Federal Way, Washington, on October 31, 2025.

The closure affects 253 employees and many customers relying on the store for groceries and pharmacy services. The Washington Employment Security Department received the WARN Act notification on September 29, 2025.

Transfer or Termination Decision

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Walmart has notified 253 employees about the upcoming closure of their store on October 31, 2025. They can either accept a transfer to another location or face job termination.

Spokesperson Anne Hatfield stated that employees must make their decision within approximately one month before the closure.

Federal Way’s Economic Profile

Federal Way City Hall Federal Way Washington
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Federal Way, Washington, is the state’s 10th largest city, with a population of 99,232 and a median household income of $82,144.

The city boasts a diverse economy, comprising healthcare, retail, professional services, and transportation, which benefits from its proximity to Interstate 5 and Seattle-Tacoma International Airport.

Store Operations Details

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The Walmart located at 1900 S. 314th Street operates daily from 6 AM to 11 PM. This store provides a variety of services, including a pharmacy, auto care, wireless services, and grocery pickup.

It serves the residents of Federal Way, in addition to the nearby Supercenter location, which offers a wider range of services to customers.

WARN Act Compliance

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In accordance with federal law, employers with 100 or more employees must issue a 60-day notice before any mass layoffs that impact 50 or more workers.

However, Walmart’s recent notification to Washington’s Employment Security Department, dated September 29, provides only about 32 days’ notice before the scheduled closure date of October 31.

Alternative Shopping Options

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The nearest Walmart Supercenter is 2.5 miles away at 34520 16th Ave S., which was renovated in 2024. Another option is the Auburn Supercenter, 3.46 miles away at 762 Outlet Collection Way.

Both locations offer full grocery departments and expanded services not found at the closing general store.

Pharmacy Disruption Details

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The closure of the store’s pharmacy affects residents, particularly those with chronic conditions that require regular medication refills.

Walmart pharmacy staff will assist patients in transferring their prescriptions to the Federal Way Supercenter or nearby Walmart locations.

National Retail Closure Statistics

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Coresight Research projects that U.S. retailers will close approximately 15,000 stores in 2025, up from 7,325 closures in 2024.

In 2025, closures are expected to outpace openings by 334.3%, with a 29.6% decrease in new store announcements compared to the prior year.

Walmart’s Washington Presence

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Walmart has a significant presence in Washington state with 63 stores and a workforce exceeding 23,000 employees.

The recent closure of a store in Federal Way will have a minimal impact on the company’s overall operations in the state, accounting for less than 1.6% of its total stores and approximately 1.1% of its employees in Washington.

Community Demographics Impact

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Federal Way is characterized by its diverse population, which comprises 35.8% White non-Hispanic residents, 17.4% Black or African American residents, and 14.4% Asian residents.

The city’s median age is 37.6 years, and the composition of households suggests that families are likely to be impacted by any disruption in services.

Employee Transfer Challenges

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Not all 253 employees can feasibly transfer to other locations due to commuting distances, family obligations, or scheduling conflicts.

The Federal Way Supercenter and Auburn location represent the closest transfer options, though both require different commute patterns for affected workers.

Legal Investigation

Walmart in Onalaska Wisconsin
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Strauss Borrelli PLLC is investigating potential WARN Act violations, questioning whether Walmart provided adequate 60-day notice as required by law.

The law firm suggests affected employees may be entitled to 60 days of severance pay and benefits if proper notification procedures weren’t followed.

Industry Employment Trends

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Retail employment faces nationwide pressure, with store closures significantly outpacing openings in 2025.

Major retailers have announced 29.6% fewer openings and 334.3% more closures compared to 2024, creating challenging conditions for retail workers.

Federal Way Economic Development

Federal Way Transit Center in Federal Way Washington
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The city maintains active economic development initiatives and collected nearly 5,000 business licenses in 2017, with 58% based locally.

Federal Way’s Economic Development Strategy focuses on business retention, attraction, and supporting existing enterprises through strategic partnerships and collaborations.

Walmart’s National Expansion Context

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Despite selective closures, Walmart announced plans in January 2024 to build or convert more than 150 stores over the next five years.

The company will also remodel 650 existing stores across 47 states and Puerto Rico, creating tens of thousands of jobs nationwide.

Regional Transportation Access

View of the platform and garage at Federal Way Transit Center with a King County Metro RapidRide bus in the foreground
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Federal Way’s strategic location, situated between Seattle and Tacoma, provides access to Interstate 5, State Route 18, and regional transportation networks.

The city is situated near Seattle-Tacoma International Airport and maintains connectivity to regional employment centers, thereby supporting economic diversification.

Housing and Cost of Living

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Federal Way’s median home value ranges from $499,600 to $587,018, with a homeownership rate of 55.7%.

The median rent of approximately $1,895 highlights the importance of stable retail employment for residents.

Store Closure Precedent

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This closure follows Walmart’s pattern of strategic footprint optimization.

While the company closed select underperforming locations in 2025, including stores in California, Georgia, Maryland, Ohio, Wisconsin, and Colorado, it maintains overall expansion plans focused on high-performing markets.

Customer Impact and Transition

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The store closure affects customers’ access to affordable groceries, pharmacy services, and general merchandise in the immediate area.

Walmart will assist customers with transitions to nearby locations and continue serving the area through Walmart.com and delivery services.

Timeline and Next Steps

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The October 31, 2025, closure date gives affected employees approximately one month to decide on transfers or seek alternative employment.

Walmart will assist with prescription transfers and customer transitions to nearby locations, while local officials monitor economic impacts on the community.