Business

Wal-Mart to end health insurance for part-time workers

Wal-mart logo on a truck Image copyright Getty Images
Image caption Wal-Mart employs 1.3 million people in the US, making it the country's largest employer

US retail giant Wal-Mart has said it will end health insurance coverage for some of its part-time workers, citing rising healthcare costs.

About 30,000 Wal-Mart employees who work fewer than 30 hours a week will be affected by the change.

Wal-Mart employs 1.3 million people in the US, making it the country's largest employer.

In a blog post, the firm said it made the change following similar moves by rival Target and others.

"Like every company, Wal-Mart continues to face rising health care costs," wrote the company.

"This year, the expenses were significant and led us to make some tough decisions as we begin our annual enrolment," it added.

Wal-Mart said it would also increase the amount that current members of its healthcare plans must pay in premiums.

It said it expected its healthcare costs to rise by $500m (£310m) this year.

In August, the company cut its profit forecast, partly as a result of rising employee healthcare costs.

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