Wal-Mart is reportedly shutting down hundreds of its stores this year.

FastFT reported that Wal-Mart will close 269 stores, with more than half located in the United States. Several more will be closed in Brazil. The stores that will be part of the shutdown will constitute a fraction of Wal-Mart’s over 11,000 stores all over the world. More than 95 percent of the stores that will be closed in the US are located within 10 miles of another Wal-Mart.

According to a statement by the company, workers will be relocated to other branches in nearby areas. Those who cannot be transferred will be given 60 days worth of pay and a severance package, if eligible. They will also offer to train and help all associates look for their next job opportunity.

In November 2015, CEO Doug McMillon informed investors that Wal-Mart that its fleet of stores will be reviewed with the objective of being more flexible as competition gets stiffer in the near future, FastFT adds. McMillon stated that closing the stores is not an easy decision but it is important for the company to manage its portfolio so it can still maintain its strength and position in the retail industry.

There will be 154 closing stores in the U.S., including 102 Wal-Mart Express stores, 23 Neighborhood Markets, 12 supercenters, seven Puerto Rico locations, six discount stores and four Sam’s Clubs. Afterwards, Wal-Mart will focus on Neighborhood Markets, supercenters, pickup services and e-commerce. According to Wal-Mart it will maintain its plan to open 85 to 95 new Neighborhood markets, 50 to 60 new supercenters and 7 to 10 new Sam’s Clubs branches across the U.S. during the fiscal year, beginning on Feb. 1, 2016. Abroad, Wal-Mart aims to open 200 to 240 more stores.

In Brazil, 60 locations that are operating at a loss will be shut down. Wal-Mart has 558 stores in Brazil but income has not been ideal due to the country’s struggling economy, Fox News Latino cited. Its constant offer of low prices was not very effective against heavy promotions conducted by its biggest rivals.

Wal-Mart stated that the closures are expected to have a financial impact of around $0.20 to $0.22 of diluted earnings per share from the operations that will continue after the shutdown. About $0.19 to $0.20 are expected to affect the fourth quarter of 2016 while the remainder will go into the first half of fiscal year 2017. Around 16,000 associates will be affected by the decision, with 10,000 of them located in the U.S.