Sam's Club, a group currently tied in a fierce battle to set itself apart from competitors, is looking to axe about 11,000 jobs, and will be turning into an independent marketing company in order to hold in-store production demonstrations across all its warehouses countrywide.

Some 10,000 of these jobs, or nearly 9% of the company's total workforce, would come from outsourcing products demonstrations at the firm, which is a unit of Wal-Mart Stores Inc. As was confirmed by Sam's on Sunday, most of these axed jobs are part-time.

Brian Cornell, President and Chief Executive of the company, has asserted that the move is aimed at improving sales and customer loyalty, and is not a cost cutting measure. "Operationally, we see this as a net neutral", he said.

The announcement of lay-offs was made by Sam's Club nationwide on Sunday during mandatory meeting with employees. Shoppers feel that despite the company's assertions, these job cuts are a mark of a poor economy.