Sears to axe 400 full-time jobs in effort to cut costs as part of restructuring

US department store chain Sears Holding Corp. (NASDAQ:SHLD) plans to cut 400 jobs as part of its restructuring plans to deliver US$1.25bn in annualised cost reductions.

Sears said it will axe workers in full-time roles at its corporate offices in Hoffman, Illinois, and from its support functions. Certain positions at the group’s field operations will also be affected.

“We are making progress with the fundamental restructuring of our operations that we initiated in February,” chief executive Eddie Lampert said in a statement.

“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 organisation.”

The retailer has so far achieved US$1bn in annualised cost savings, putting it on track to reach its US$1.25bn target.

Sears said the number of people affected by the headcount reduction represented a “small fraction” of its total workforce but was “conscious” of the impact on individual employees.

“We don’t take eliminating positions lightly,” a Sears spokesman told CNBC in an email.

“However, in our efforts to become a more competitive retailer and return our company to profitability, we need to look for ways to streamline the organisation.”

Last week Sears confirmed that it plans to close 66 further stores on top the 180 it announced it was shutting earlier this year. 

Story by ProactiveInvestors