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Saturday, February 18, 2012

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.

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