Sears Holdings Corp. announced today that it will eliminate 400 full-time positions at corporate offices and in support roles. The department store chain said the majority of the positions will be at its Hoffman Estates, Ill. headquarters, but described the job cuts as global. Sears first eliminated job openings and reduced contract workers before making cuts to full-time positions. The struggling retailer said in April that it would make cost reductions of $1.25 billion in fiscal 2017, and says its actions have created $1.0 billion in annualized cost savings to date.
Total Retail's Take: Another cost-saving move by Sears as its struggles to survive amid plummeting sales and profits. Sears announced last week that it was closing an additional 72 stores this year (on top of the 180 stores it had already marked for closure in 2017), and has also been in a dispute (recently resolved) with one of its leading product suppliers, One World Technologies, which makes Craftsman tools. To say Sears’ future is uncertain is putting it nicely. The retailer does have Eddie Lampert, its chairman, CEO and primary investor, willing to continue to invest in the company, but one has to wonder how long that patience will last if signs of a turnaround don't emerge soon.