Wal-Mart Canada set to axe 200 employees at head office Wal-Mart Canada Corp. is preparing to let go about 200 of its employees as it feels the pressures of an increasingly fast-changing and crowded retail landscape, industry sources say. The layoffs, mostly at its head office in Mississauga, come on the heels of it cutting about 750 jobs across the country last spring in a store management restructuring. The latest staff reduction, which is expected to be announced next week, follows some disappointing financial results at Wal-Mart Canada over the past several quarters even as its total sales keep rising as it invests in expanding its stores and e-commerce. At the same time, digital heavyweights such as Amazon.com Inc. are bolstering their business, pinching rivals. On Thursday, U.S. parent Wal-Mart Stores Inc. is set to unveil its third-quarter results. Andrew Pelletier, a spokesman for Wal-Mart Canada, said on Wednesday that he could not comment on rumours or speculation. In this competitive retail climate it's not unusual for rumours to circulate. The domestic chain has more than 95,000 employees in all and almost 400 stores. The Canadian division's operating profit has dropped in three of the past seven quarters, while its same-store sales have slipped in six of the past seven quarters, picking up just 0.2 per cent in the second quarter, the company has reported. Same-store sales are considered an important measure of retail health. But in its second quarter, its e-commerce sales, although a small percentage of its overall revenue, enjoyed a "triple-digit" surge, the company said. In the quarter, Wal-Mart Canada's total sales rose 2.9 per cent, driven by expansions of its Supercentres that include full supermarkets. Shopper traffic to its stores dipped 1.1 per cent, although customer purchase amounts rose 1.3 per cent. Wal-Mart Canada is estimated to generate about $23-billion in annual sales; the company does not break out the amount of Canadian revenue. The latest job cuts are part of the retailer's bid to operate in a more streamlined way, a source said. "This thing is designed to create changes that create a more efficient organizational structure," the person said. The changes come as other big retailers feel a squeeze, including Sears Canada Inc. and Target Corp."s fledgling Canadian division. Smaller chains, such as Reitmans (Canada) Ltd., Danier and Bikini Village have shut stores as they feel the heat of an ultra-competitive market. Other retailers are operating under court proceedings, including fashion chain Jacob and home goods specialists Bowrings and Bombay. Many retailers are under pressure as growth in online sales outpaces increases in physical stores. "The digital revolution is sweeping across all facets of retail," retail analyst Keith Howlett wrote in a report last month. To compete in the new era, almost all discretionary retailers need to establish effective omni-channel operations. He was referring to retailers that operate seamlessly online and in stores, allowing shoppers to purchase at either one. In Wal-Mart Canada's management changes last spring, 1,300 of its employees were promoted to more senior roles and about 200 store managers were added.