HOFFMAN ESTATES, Ill. (AP) — Sears, Roebuck & Co. is in the midst of a corporate restructuring review that might mean the third round of job cuts at its corporate headquarters in as many years, company officials have confirmed.
Chief executive officer Alan Lacy outlined the restructuring effort in a memo to employees last week, saying it was being done to give the retailer a "more focused and efficient corporate structure."
Another reason for possible job reductions at Sears' corporate headquarters in this Chicago suburb is the sale of Sears' credit card operations, which was completed last month.
That sale was announced in March and hailed as an opportunity for the company to concentrate on its core retail business. But sales at Sears' stores have been declining, so the retailer has been forced to lure holiday shoppers with price reductions, which reduce profit margins.
Sears has lowered its sales expectations for the entire fourth quarter.
Sears spokesman Chris Braithwaite said Sunday that job cuts weren't necessarily the aim of the restructuring but added that it would be reasonable to anticipate some.
"We're in a very competitive market, where highly efficient big-box stores are rewriting the rules of competition," Braithwaite said.
Sears has 4,800 employees at its headquarters, 500 fewer than it had at the beginning of the year. The headquarters staff was cut by 10 percent in July 1999, and another 1,300 jobs were eliminated in early 2002.