“We are making progress with the fundamental restructuring of our operations that we initiated in February”, CEO Eddie Lampert said in a statement.
This is part of the department store chain’s ongoing restructuring efforts, which are created to deliver $1.25 billion in annualized cost reductions, the company said.
Lampert added that the company remained focused on the realigning of its business model in the highly competitive and evolving retail environment. “This requires us to optimize our store footprint and operate as a leaner and simpler organization”.
Sears said on Tuesday cost-cutting efforts had helped it save almost $1 billion so far this fiscal year. The retailer said it will continue to take “all necessary action” to achieve profitability.
While the majority of the eliminated positions are in Hoffman Estates, some are in Sears’ field offices.
In Lancaster County, Sears is an anchor store at Park City Center while there are Kmart stores in Elizabethtown, Columbia, Willow Street and Ephrata.
Sears will provide eligible associates with severance compensation and transition assistance.
“We don’t need more customers”.
The struggling retailer said Tuesday the bulk of job cuts will be at its Hoffman Estates, Ill., headquarters, adding it worked to leave open positions unfilled and reduce contract workers before cutting full-time jobs.
Sears also plans paydown of approximately USD418 million of term loans outstanding under its revolving credit facility and extension of the maturity of USD400 million of our USD500 million 2016 secured loan facility up to 12 months.
Sears on Tuesday said the most recent store closings were started last week although the locations of those closures are still not confirmed.