Sears Canada Rings Up More Job Cuts
Unfortunately for Sears (NASDAQ:SHLD) employees, the job cuts just keep on coming. The latest news is that the retailer is shaving more than 1,600 jobs from its workforce in Canada, accounting for 7 percent of its total manpower.
Reuters reports that the Chicago-based retailer announced Wednesday that its Sears Canada division plans to orchestrate major job cuts in the near future on account of the company outsourcing some of its business. Sears Canada signed an agreement with IBM Corp. (NYSE:IBM) to take over work currently handled internally, and the new structure will affect 1,345 jobs at three call centers in the country over the next nine months. An additional 238 jobs will also immediately be cut as Sears Canada reorganizes its logistics unit.
As a whole, Sears has been struggling to revive sales since 2005, when hedge fund manager Edward Lampert merged Sears and discount chain Kmart. However, the company’s prospects have taken a turn for the worse in recent months, as the company continues to issue disheartening forecasts and reports. Sears reported this week that sales dropped 7.4 percent at established stores during the fourth quarter. Sears shares fell nearly 14 percent after its latest report, and the announcement Wednesday may not prove to be much help.