Mediocre fourth quarter and year-end profit results are continuing to shake up employment at major department stores. First, Kohl’s opted to end ties with three members of its executive staff; now, Sears and Walmart are following suit. Both retailers have announced hefty job cuts in corporate office positions alongside store closings. Are we sensing a trend?
After a “challenging” holiday season, Sears is continuing to scale back on its physical presence. The retailer has already announced it is shutting down approximately 50 stores. In order to cut costs of $550 million to $650 million, Sears also plans to eliminate 250 jobs, mainly at its Hoffman Estates, Ill. headquarters. There also are 150 open positions at Hoffman Estates that will not be filled.
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In a memo to employees, Edward Lampert, CEO of Sears Holdings said, “As we begin the new fiscal year, it is incumbent on all of us — at all levels of the organization — to sharpen our focus and efforts as we work to build and enhance our relationships with our (customers). I’m asking each of you to work faster and smarter and to sharpen your efforts throughout the year.”
For its part, Walmart is suffering from a 7.9% decline in fourth quarter earnings. The retailer will terminate more than 100 employees (mainly in the information services division) at its Arkansas headquarters. The IT division was merged with the @Walmart Labs division in January, with the combined group operating under the name Walmart Technology.
