Sears laying off 100 at Hoffman Estates, Illinois HQ

Sears Holdings Corp., the beneficiary of a just-passed special state subsidy, is laying off 100 workers at its Hoffman Estates headquarters.

A spokesman for the big but troubled retailer on Thursday confirmed that workers in "a variety of departments" are being notified that their jobs are gone.

"I can confirm that we are laying off about 100 people today," spokesman Chris Brathwaite said. "These decisions are never easy, but they are necessary as part of our efforts to transform the company."

The layoffs will take effect immediately.

Mr. Brathwaite said the layoffs do not violate the terms of a $150 million payroll tax credit for Sears that was approved by the General Assembly in December after it threatened to move its headquarters out of state.

"It's important to know that under the legislation that was passed, if we don't meet our obligations, we receive no benefits," he said. "We're focused on improving our business and continuing to be a strong, contributing member of the Illinois business community."

The legislation, which authorizes $15 million a year in payroll tax credits over the next 10 years, does not go into effect until the next fiscal year, Mr. Brathwaite said. And the job levels specified in the legislation are well below the figure Sears will hit even with today's layoffs.

The company employs about 6,000 workers in Hoffman Estates.

Asked if the layoffs violate the spirit of the new legislation, Mr. Brathwaite said, "absolutely not."

Under the legislation, the state also extended the life of a special property tax district that benefits the company.

Jewel-Osco cutting corporate jobs in Chicago

(Crain's) — Jewel-Osco will eliminate 20 jobs from its Chicago corporate office as part of a broader cost-cutting effort from its Supervalu Inc. parent. The losses will affect Jewel's store support center in Itasca, and no store-level associate jobs will be eliminated, according to a Supervalu spokesman.

Minneapolis-based Supervalu plans to trim 800 jobs throughout the company, the majority of which will take place by the end of the company's fiscal year Feb. 25. The reductions include both current positions and open jobs that won't be filled.

"These reductions are necessary to help further strengthen and accelerate Supervalu's business turnaround in a very competitive marketplace," Supervalu CEO Craig Herkert said in a statement. "While the announcement of a workforce reduction is difficult news to share, due to its direct impact on our associates, these changes will allow us to better connect with customers and put more authority in the hands of people who interact more closely with our customers."

Last month, Supervalu reported a dismal third quarter, posting a $202 million loss compared to a profit of $109 million in the year-ago period. The grocer also cut its full-year outlook based on the poor performance.

At the time, Mr. Herkert said that the company had "invested heavily in promotional activities that proved to be less than effective." He added that the company's "performance is still not close to my expectations and we continue to take action to change the trajectory of our business."

Supervalu stock was essentially unchanged after the layoff news, trading at $6.93 midmorning, but has been circling its 52-week low of $6.26 ever since last month's earnings report.