More trouble on Wal-Mart's clothing front.

The company's apparel division has been struggling for quite some time--even before the monumental flop of its "cheap chic" Metro 7 clothing line. Now, Wal-Mart is poised for a bit of corporate nip and tuck by trimming down its clothing staff and eliminating two divisions from its Bentonville headquarters.

The New York Times reports:

In a major revamping of its sluggish clothing business, Wal-Mart Stores will shut two divisions at its headquarters in Arkansas, eliminate dozens of positions and move dozens more to New York City.

This will be the first time in years that Wal-Mart, a company renowned for growth, has laid off a significant number of workers at its headquarters.

The overhaul, which has not been made public, is intended to revive one of the weakest departments in Wal-Mart’s 5,000 stores: men’s, women’s and children’s apparel, a $30 billion business for the retailer.

Over the last several years, under the direction of Claire Watts, the top clothing executive, the company experimented with somewhat more upscale collections. Wal-Mart created new divisions to spot trends and to design apparel.

But customers largely rejected the new looks — and, in July, Wal-Mart pushed out Ms. Watts. Today, it is emphasizing what executives call “key items,” like basic, brightly colored T-shirts, over outfits from clothing collections.

Read more here.