Wal-mart announced a $400-million buyout of its grocery business on Thursday.
It also plans to buy back stock and shut down stores that are no longer profitable.
The retailer said it will close roughly 2,000 stores this year.
Walmart said it is cutting 1,500 stores in the U.S. and plans to close about 1,600 in 2018, down from its original goal of closing 700 stores in 2018.
Wal-marts are struggling to make ends meet as they have to compete with a shrinking middle class and the decline of the traditional grocery industry.
Walmart is also facing rising costs for its food, which is also being affected by higher commodity prices.