Illinois: Sears cuts 130 corporate jobs

Sears Holdings has laid off 130 people, mostly at its Hoffman Estates headquarters, as part of a larger cost-cutting effort designed to save the money-losing company $1 billion this year.

The jobs were cut from various business units and roles, according to Sears spokesman Chris Brathwaite.

He declined to comment on whether more layoffs will follow but confirmed that more changes are coming.

Sears will "continue to take decisive actions to restructure our operations," Brathwaite said, and will continue "to analyze our operating model for greater efficiency beyond today's actions." That means "simplifying" the company structure and bringing "greater consolidation" to both Kmart and Sears, he said.

"This activity is necessary to create a more nimble operating structure capable of driving the company's strategic transformation forward," Lampert wrote in the email obtained by Business Insider. "We highly value all of our associates and do not take these decisions lightly."

Brathwaite declined to specify the number of corporate workers who remain employed at Sears headquarters, but he said it remains above the 4,250 people it needs to maintain to keep its tax breaks under the state EDGE program. Under its 2011 agreement with the state, Sears received 15 years in property tax breaks and state income tax credits worth $15 million a year for a decade.

Sears laid off 115 workers in early 2015 and another 250 last year.

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.