Kmart Cuts 15 Percent of Jobs at Headquarters
CHICAGO - Kmart Corp. on Monday said it would cut 660 jobs, including reducing its headquarters staff by about 15 percent, in a move designed to save $150 million a year as the company works to emerge from bankruptcy, Reuters reports.
Kmart said the latest round of cuts involve 400 jobs at its Troy, Mich., corporate headquarters, 123 corporate-support positions elsewhere, and eliminating 137 positions that are currently open.
It is the second round of reductions at Kmart's corporate headquarters since the company filed for bankruptcy, following a reduction of 400 jobs last August. After the latest job cuts, Kmart said it will have a corporate headquarters staff of 2,360.
Stores and distribution centers are not involved in the latest round of cuts, which are expected to save $90 million for Kmart's fiscal 2003 year and $150 million annually, the company said.
Kmart's total work force after the latest reductions will number about 170,000.
"The realignment and restructuring of our corporate headcount operations to more closely support our stores is absolutely critical to Kmart's future success after it completes its Chapter 11 reorganization," said Chief Executive Julian Day in a statement.
Employees affected by the cuts will be eligible for severance packages, Kmart said.
Kmart said the latest round of cuts involve 400 jobs at its Troy, Mich., corporate headquarters, 123 corporate-support positions elsewhere, and eliminating 137 positions that are currently open.
It is the second round of reductions at Kmart's corporate headquarters since the company filed for bankruptcy, following a reduction of 400 jobs last August. After the latest job cuts, Kmart said it will have a corporate headquarters staff of 2,360.
Stores and distribution centers are not involved in the latest round of cuts, which are expected to save $90 million for Kmart's fiscal 2003 year and $150 million annually, the company said.
Kmart's total work force after the latest reductions will number about 170,000.
"The realignment and restructuring of our corporate headcount operations to more closely support our stores is absolutely critical to Kmart's future success after it completes its Chapter 11 reorganization," said Chief Executive Julian Day in a statement.
Employees affected by the cuts will be eligible for severance packages, Kmart said.