While its competitors are making investments, Sears continues to make cuts.
Sears Holdings Corporation on Tuesday announced the elimination of 400 full-time positions. The job loss will be focused on corporate positions, though others will span support and field roles as well as those associated with previously announced store closures.
These actions are designed to help the retailer reach its $1.25 billion annualized savings goal. To date, Sears has achieved almost $1.0 billion in cost savings.
By eliminating the positions, the retailer says it can further simplify its organizational structure and consolidate Sears and Kmart functions.
“We are making progress with the fundamental restructuring of our operations that we initiated in February,” said Edward S. Lampert, chairman and chief executive officer of Sears Holdings. “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 organization.”
The company also reiterated its commitment to paying down approximately $418 million of term loans under revolving credit facility and extension of the maturity of $400 million of a $500 million 2016 secured loan facility up to 12 months.
As was announced last month, the company has also entered an agreement with Metropolitan Life Insurance Company to annuitize $515 million of its pension plan. And it continues to monetize certain real estate properties to the tune of $200 million to date.
Sears Holdings has announced the closure of more than 200 Sears and Kmart stores as well as 92 pharmacies and 50 Auto Centers.