The Bentonville, Ark., company said it would end the benefit, called MyShare, at the end of the company's fiscal year, according to a memo to staff that was viewed by The Wall Street Journal.
"We are rolling MyShare into associates' base pay going forward," the memo reportedly said.
A Walmart spokesperson told the Journal that hourly pay was the most important part of its staff's compensation, while the bonus made up just a portion of the pay increase workers are receiving.
For decades the MyShare bonuses were distributed annually based on store performance. A variety of measurements, including attendance and theft, determined the size of the bonuses, according to the Journal.
Walmart said last week that it would raise its starting wage to $12 an hour from $11. The company in 2018 had set the wage at $11.
The move now increases pay for about a third of Walmart's 1.6 million U.S. workers. The increase is effective at the end of September.
A number of Walmart's competitors have also raised their starting wages, some to $15 an hour and above. Employees at Amazon (AMZN) - Get Amazon.com, Inc. Report and Target (TGT) - Get Target Corporation Report recently saw their base pay rise to $15 an hour.
Walmart shares at last check were down 0.5% to $146.67.