Sears Holdings to axe 400 jobs to reduce costs
US-based integrated retailer Sears Holdings is cutting 400 full-time positions, as part of its previously announced business restructuring programme.
The majority of the job losses will affect the company’s headquarters in Hoffman Estates in the US.
The job cuts support global functions and some of its previously announced store closures.
According to the retailer, the restructure is expected to result in annualised cost reductions of $1.25bn.
The company has so far achieved annualised cost savings of $1bn and expects to realise the planned target of $1.25bn this fiscal year.
Sears Holdings chairman and CEO Edward 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 optimise our store footprint and operate as a leaner and simpler organisation."
In April, the retailer completed the closure of 150 non-profitable stores, including 108 Kmart and 42 Sears locations.
Meanwhile,Sears Canada has reported a decline in the first quarter revenue of 15.2% when compared with that of the same quarter last year.
It also stated that the net loss for the first quarter stood at $144.4m.
Sears Canada has expressed concern over its financial liquidity and its ability to continue as a going concern.
The company noted that its business operations are contingent on obtaining additional liquidity in the range of $175m.
However, the estimated amount available under the plan has been reduced to $109m and this is expected to influence the company’s decision regarding business operations.
Image: Sears Holdings headquarters. Photo: courtesy of Sears Brands.