Sears lays off 200 corporate workers as sales tumble (SHLD)


Sears

Sears Holdings laid off 200 corporate employees on June 26.
The layoffs followed Sears’ announcement that it would close nearly 80 stores by September.
“Having coworkers and friends leave the organization is never easy, but making changes like these are a necessary part of creating a stronger organization in this time of industry disruption,” Sears CEO Eddie Lampert wrote in a June 26 memo to employees announcing the job cuts.
Sears cut roughly 220 corporate jobs earlier this year, following two rounds of cuts last year totaling more than 500 jobs.

Sears laid off 200 corporate employees in June, the company told Business Insider on Wednesday.

The layoffs, which took effect June 26, came on the heels of the company’s announcement that it would close nearly 80 Sears and Kmart stores in August and September.

About 150 of the workers impacted were based at the company’s headquarters in Hoffman Estates, Illinois.

In a memo to employees dated June 26, Sears CEO Eddie Lampert said the cuts were part of an effort to streamline operations and return the company to profitability.

“Having coworkers and friends leave the organization is never easy, but making changes like these are a necessary part of creating a stronger organization in this time of industry disruption,” Lampert wrote. “We continue to fight every day to improve the performance of Sears Holdings —and you are central to that effort.”

Sears has been looking for ways to cut costs following years of crippling sales declines. The company has cut its store count in half within the past five years to 894 stores as of May 5, down from 1,980 stores in 2013.

Sears has also been systematically trimming its corporate workforce. The company cut roughly 220 corporate jobs earlier this year, following two rounds of cuts last year totaling more than 500 jobs.

Sears disclosed last year that its corporate headcount at Hoffman Estates and a nearby satellite office had fallen to under 4,250 workers, from 5,444 employees in 2015.

Here’s Lampert’s full memo to employees:

As we work to advance our strategic transformation, we all know that we must return the company to profitability in order to retain the confidence of our constituents. This means continuing to look at ways to streamline our operations while staying focused on our Best Members, Best Categories and Best Stores.

Today, we made the very difficult decision to eliminate a number of positions across various business units and roles. While these changes didn’t impact a large percentage of our workforce, your leadership team and I want you to know that these decisions were not taken lightly or easily. We are grateful for the contributions of these associates and we are committed to treating them with compassion and respect during this challenging time, including offering severance and outplacement assistance to make career transitions easier for all who are eligible.

Having co-workers and friends leave the organization is never easy, but making changes like these are a necessary part of creating a stronger organization in this time of industry …read more

Source:: Business Insider

      

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