That requires the company to optimize its store footprint as well as operate an organization that is simpler and leaner. That's on top of the 150 stores that closed in April.
Sears is cutting 400 full-time jobs at its headquarters in IL and elsewhere as part of its savings plan that will 150 stores by the end of 2017 but purportedly help the crumbling company pocket more than $1 billion a year. "As part of the organizational restructuring, the company first eliminated open positions and reduced contract employees in an effort to minimize the impact on full-time employees", Sears said.
As previously announced, Sears' strategic restructuring program is created to deliver $1.25 billion in annualized cost reductions. The Company is the parent company of Kmart Holding Corporation (Kmart) and Sears, Roebuck and Co.
Now, Lampert says the next steps of the restructuring programme include the elimination of about 400 full-time positions at the company's corporate offices and support functions globally, in addition to certain positions at its field operations as well as the store closures it initiated last week.
However, just two months later, and despite making what it called significant progress in reducing its cost base, Sears announced it would be taking "further action" by cutting an additional $250m in costs across its operations and naming a new chief financial officer.
Eligible associates will be provided severance compensation and transition assistance.
The company said it's aware of the impact on its employees.
Another round of job cuts for Sears as the retailer prepares to get rid of 400 employees. While we believe that our forecasts and assumptions are reasonable, we caution that actual results may differ materially.
Sears Holdings Corporation, launched on November 23, 2004, is an integrated retailer. Sears Holdings is home to Shop Your Way, a social shopping platform offering members rewards for shopping at Sears and Kmart, as well as with other retail partners across categories important to them.