- Walmart is shutting down Jet.com, the e-commerce site it acquired for $3.3 billion four years ago.
- Walmart last year announced plans to absorb Jet's staff into its operations and said Jet would remain a standalone site.
- Jet later faced a stream of departures of its top leaders.
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Walmart said on Tuesday that it planned to shut down Jet.com, the e-commerce site it acquired in 2016 for $3.3 billion.
"Due to continued strength of the Walmart.com brand, the company will discontinue Jet.com," the company said in an earnings news release. "The acquisition of Jet.com nearly four years ago was critical to accelerating our omni strategy."
After acquiring Jet, Walmart named Jet's cofounder Marc Lore the head of its US e-commerce business.
Then last June, Walmart announced plans to absorb Jet's staff into its operations.
"This natural progression of integrating an acquisition allows us to fully leverage Walmart's assets for Jet and leverage Jet's talent for Walmart," Lore said in a blog post at the time.
Walmart said that it would not cut any jobs during the transition and that Jet would remain a standalone site. In the following months, the company faced a stream of departures of top leaders.
In November, Walmart said it would end Jet's grocery-delivery service in New York City.
Walmart also announced on Tuesday that its US same-store sales rose by 10% in the first quarter and that its US e-commerce sales grew by 74%. Total revenue increased by $10.7 billion, to $134.6 billion.
