Sears Lays Off 220 Employees

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Sears Canada

Sears Holdings is undergoing another round of layoffs.

This time the retailer, which operates Sears and Kmart, is letting 220 employees go, primarily from its corporate headquarters.

The cuts were made across business units and were part of the retailer’s continued efforts to restructure and cut costs, according to a spokesperson who spoke with CNBC.

The spokesperson reiterated Sears ‘goals and achievements, saying, “The company continues to achieve significant progress in our restructuring program, with actions taken in fiscal year 2017 to realize $1.25 billion in annualized cost savings.”

[See more about how Sears fared last year: Infographic: Defying Doubts, A Diminished Sears Dodges Bankruptcy Throughout 2017]

In early January, the company announced plans to close 103 more stores.

While most other department stores saw a robust season, the holidays were a bust for Sears, which reported a comp store sales decline between 16 percent and 17 percent across its two banners.

In a bid “to generate liquidity and increase our financial flexibility,” according to Sears Holdings CFO Rob Riecker, the company continues to borrow heavily against its real estate and intellectual property. It’s also shopping around its Kenmore and DieHard brands.

Sears continues to slog along under $3.3 billion in debt, defying industry watchers’ predictions that it will join the list of stores that have fallen into bankruptcy.

Predictably, the retailer’s stock took a hit on this latest news, dropping by 2.5% yesterday afternoon.

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