After a week of major layoff announcements from Amazon, UPS, Pinterest, and Nike, at least some American workers got some welcomed news on Thursday: Walmart is promoting 3,000 of its pharmacy workers across nearly 4,600 U.S. locations, and some will receive up to an 86% raise.
The world’s largest retailer and top Fortune 500 company has promoted these workers to pharmacy operations team lead positions that pay an average of $28 per hour, with the potential to earn up to $42 per hour. Pharmacy technicians now make an average of $22 per hour, and can earn up to $40.50 per hour—an 86% pay increase.
What’s also encouraging in an era in which younger generations are starting to question the return-on-investment for higher education is that these jobs don’t require a college degree. Walmart fully funds the certifications, with more than 22,000 associates having been trained since 2016.
Assuming these employees work a standard 40 hours per week, they could earn more than $87,000 per year. That’s nearly 34% more than what the average American earns, according to Bureau of Labor Statistics data. Pharmacy associates also get access to Walmart’s benefits including medical coverage, 401(k) plans with a 6% company match, paid time off (including parental leave), and an associate discount. This year, Walmart also helped out its workers by giving employees a year-round 10% discount, the latest in a series of moves by outgoing CEO Doug McMillon to boost worker pay.
Lisa Simon, chief economist at workforce intelligence company Revelio Labs, told Fortune this is a smart financial move on Walmart’s part, considering it’s become increasingly expensive and time-consuming to hire credentialed pharmacy staff.
“Promoting from within allows Walmart to control labor costs while retaining workers who already have institutional knowledge of store operations and customers,” Simon said. “Paying for certification is often cheaper than competing for outside hires.”
A Walmart spokesperson also told Fortune it’s “very easy” for Walmart associates in other roles to move into a pharmacy job. A pharmacy sales associate is a cashier, with a direct path into pharmacy technician roles, with their pay ranging from $18 per hour to up to $40.50/hour, depending on location. Hourly associates overall average $18.25/hour, the Walmart spokesperson said.
And to Simon’s point about elevating workers instead of making outside hires, Christina Muller, a licensed clinical social worker and founder of Mind Your Workplace, also told Fortune Walmart’s move is savvy from a culture prospective.
“Promotions across the board and wage increases send a powerful psychological signal: you matter,” Muller said. “Decades of workplace research show that with actions like these engagement rises, turnover drops, and productivity improves. The demands of pharmacy work are already high, and this kind of investment acts as a shock absorber in a taxed system.”
Walmart’s senior vice president of pharmacy, Kevin Host, said it’s also a gesture to recognize their hard work.
“This investment is really about supporting the pharmacy teams who show up for their communities every day,” Host said in a statement. A Walmart spokesperson told Fortune the company will also continue adding to pharmacy technician headcount.
The promotion and raise announcements also serve as one of Walmart CEO Doug McMillon’s last moves as chief of the world’s largest retailer. He’s set to retire this week after decades there, and leaves behind an impressive track record of increasing worker pay, having made several major wage adjustments during his tenure. In 2025, Walmart reported the average hourly wage for a U.S. associate was about $18.25, and McMillon said U.S. hourly wages were up more than 90% over the prior decade. While inflation has surged over the past decade, it was up roughly 35% from 2015 to 2025.
Walmart’s health care expansion strategy
While the promotion and raise announcements are nice news for Walmart workers, it’s also a move reflective of how the retail giant is diving head-first into health care.
The initiative bolsters Walmart’s growing health and wellness footprint, including services like Better Care Services, LillyDirect Integration, and pharmacy delivery. The changes allow pharmacists to focus more on patient care while enhancing after-hours access, when 75% of testing and treatments occur.
This move also comes after other major pharmacies are showing signs of struggle. CVS has cut hours in two-thirds of its pharmacies due to staffing shortages and closed stores in 2025, while Walgreens limits hours and closes stores.
Now, Walmart will compete with Amazon, the world’s second largest company, which is pushing same-day delivery and specialty drugs. Walmart insists, though, in-person trust and accessibility in thousands of communities helps.
“We want care to feel simple and close to home,” Host said. “Our pharmacists and technicians make that possible. They’re the reason customers can count on us as a trusted, one-stop destination for wellness.”
Simon also said she sees Walmart as a viable competitor in the pharmacy space.
“While online pharmacies continue to gain ground on convenience and delivery, brick-and-mortar pharmacies still compete on access, trust, and in-person care,” she said. “Having a stable, well-trained workforce is critical to that value proposition.”
