Sears Lays Off 100 at Corporate Headquarters
February 17, 2012,
HOFFMAN ESTATES, Ill.-Sears has laid off 100 employees in its corporate headquarters, "as part of our efforts to transform the company," according to a spokeswoman for the retail holding company.
The spokeswoman said employees in "a mix of different positions" were laid off. "Those who are eligible will receive severance," she said.
"The combination of lower sales and continued margin pressure, coupled with expense increases, has led to a decline in our adjusted EBITDA," the statement said. "Accordingly, we expect that our fourth-quarter consolidated adjusted EBITDA will be less than half of last year's amount." In last year's fourth quarter, Sears Holdings reported operating income of $663 million.
Also in that statement, CEO Lou D'Ambrosio said the company would take actions to reduce its expenses, including the closing of 100 to 120 Sears and Kmart stores, inventory reductions of $300 million during the 2012 fiscal year, better inventory management and more targeted pricing and promotion to improve gross profit dollars, and the reduction of fixed costs by $100 million to $200 million.