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Sears to slash 400 more jobs as part of $1.25bn restructuring program

RBR Staff Writer Published 14 June 2017

American retailer Sears Holdings plans to cut about 400 jobs as part of a strategic restructuring program aimed at cutting $1.25bn of cost.

The jobs it plans to eliminate are full-time roles at its corporate offices in Hoffman Estates in Illinois and from its support functions. It would be in addition to removal of certain jobs at its field operations and store closures initiated last week.

Sears stated that it is offering severance compensation and transition assistance to eligible associates.

It added that it has first removed open roles and decreased the count of contract employees to ensure that the organizational restructuring doesn’t have much impact on full-time employees.

Sears Holdings chairman and CEO Edward S. Lampert said: "We are making progress with the fundamental restructuring of our operations that we initiated in February.

"We remain focused on realigning our business model in an evolving and highly competitive retail environment. This requires us to optimize our store footprint and operate as a leaner and simpler organization."

So far, the department store chain says that it has taken actions to realize $1bn in annualized cost savings and is well on track to deliver the remainder $250m savings through actions executed in the current fiscal year.

Last month, Sears Holdings reported $4.3bn revenue for the first quarter of 2017 which was well below the $5.4bn it generated in the same period of the previous year.

In January, Sears Holdings announced a series of changes to its business operations in a move to grow its financial flexibility and boost its long-term operating performance.

As part of its plan, the retailer announced the closure of 150 non-profitable stores in the US comprising 108 Kmart and 42 Sears stores to keep a check to its losses.

Image: A Sears store in Paramus Park shopping mall in Paramus, New Jersey. Photo: Courtesy of Nightscream/Wikipedia.