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.
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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.
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By GlobalData"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.
