Early Tuesday morning, Sears announced it was slashing 400 jobs for full time employees at corporate headquarters located in Hoffman, Illinois and for support functions. Stephan Zoll, president of Sears' online operations; David Pastrana, president of Sears' apparel division; and Eric Jaffe, senior vice president of Shop Your Way, the retailer's loyalty program, will be departing.
"We don't take eliminating positions lightly", a Sears spokesman told CNBC in an email. "We have all the customers we could possibly want", Lampert said at the company's annual shareholder meeting in May. A year ago, it reported a loss of $181 million. Sears dipped below the requirement because it was only allowed to count certain types of jobs, Riefs said in an email. To get the credit, Sears had to invest in the state. The company has invested $260 million so far, more than 85 percent of the amount it was required to spend as part of the incentive agreement, Riefs said.
Sears has been struggling with a sales malaise that extended during the first quarter.
The retailer also has said it would continue taking all the necessary actions needed to reach profitability.
This comes just one week after the company announced it will close dozens of stores. To date, the retailer said it has made about $1 billion in annualized cost savings to date, and remains on track to meet its target.
In a statement, Sears Holdings said that while the total number of people directly affected by the restructuring represents a "small fraction" of their total headcount, they are "are conscious of the impact on individual employees". "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", he added.