Sears Cutting More Jobs, Online Head Stepping Down
In addition, Stephan Zoll, online operations president at Sears will step down from that position on June 15, the retailer said on Tuesday in another 8-K filing with the U.S. Securities and Exchange Commission.
The job cuts just announced are part of the retailer’s ongoing efforts of restructuring that are designed to deliver annualized reductions in costs of more than $1.25 billion, said company officials.
CEO at Sears Eddie Lampert said the company was making progress with the restructuring of its operations that was started back in February of 2017.
Lampert added that the company remained focused on the realigning of its business model in the highly competitive and evolving retail environment. That requires the company to optimize its store footprint as well as operate an organization that is simpler and leaner.
Sears announced it made close to $1 billion in cost savings on an annualized basis to date, and is still on track to meet its target of $1.25 billion
The retailer also has said it would continue taking all the necessary actions needed to reach profitability.
With respect to its latest job cuts, the company announced Tuesday that some positions at field operations would be impacted by its restructuring actions.
Sears said that while the full number of employees who are affected directly represents just a small part of the company’s total employee count, the company remains conscious of the impact it has on individual workers.
Sears is providing its eligible associates severance compensations and assistance with their transition.
Officials at the company said the reductions in staff were taking place in a number of areas and represent a mix of different positions in different business units along with roles across its organization.
Last week, Sears confirmed plans to close 66 more stores adding to the 180 closures previously announced earlier in 2017.
Sears on Tuesday said the most recent store closings were started last week although the locations of those closures are still not confirmed.
Other steps Sears said it was making to improve its performance included paying down term loans by $418 million, monetizing a certain amount of its real estate that generated more than $200 million of overall proceeds and reaching an agreement to reduce the pension plan of the company with Metropolitan Life Insurance.