Sears is laying off 115 employees at its headquarters and other corporate support locations to reduce expenses in the face of mounting losses.
First reported by Crain’s and the Chicago Tribune, about 100 job cuts have been confirmed by Sears at its Hoffman Estates headquarters while 15 other positions would be made redundant at corporate support locations around the country.
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Sears said in a statement: "The company continually seeks to enhance its operational efficiencies and reduce expenses while we manage the strategic needs of the business.
"These decisions are never taken lightly, but they are a necessary part of our efforts to transform the company and return it to profitability."
Eligible employees will receive outplacement services and severance, the retailer said.
These job cuts will be spread across most of Sears’ 30 business units, from tools and appliances to the legal department.
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Sources familiar with the matter reveal that majority of cuts are in the consumer electronics unit as lagging electronics sales are billed as the major cause of the retailer’s sagging performance. However, Sears spokesman Chris Brathwaite denied it.
Sears posted 10th straight quarterly loss in December to the tune of $296m, as sales continue to decline.
In an attempt to reinvent itself, Sears is spinning off assets and slashing inventory. It closed 235 Sears and Kmart stores last year.
Sears CEO Edward Lampert is increasingly shifting focus to online sales and Shop Your Way, Sears’ digitally driven loyalty program that tracks shopper spending and sends customers individualised coupons, to transform the company into a more profitable omnichannel shopping enterprise.
The retailer employs about 5,000 people at its headquarters.
