Sears lays off 100 workers at its headquarters: spokesman

Reuters News
Posted: Feb 16, 2012 8:03 PM
Sears lays off 100 workers at its headquarters: spokesman

(Reuters) - Retailer Sears Holdings Corp has laid off about 100 workers at its headquarters in Hoffman Estates, Illinois, a company spokesman said on Thursday.

The news comes just two months after the operator of Sears department stores and the Kmart discount chain got a big tax credit from the Illinois legislature to keep its headquarters there. Sears had earlier threatened to move its headquarters to other states in the wake of an increase in the corporate tax rate in Illinois.

The layoffs of about 100 workers were effective immediately, spokesman Chris Brathwaite said. About 6,100 people currently work at that site.

Brathwaite said the job cuts do not violate the terms of the $150 million tax credit Sears got from the state of Illinois in December.

"Those who are eligible will receive severance. These decisions are never easy, but they are necessary as part of our efforts to transform the company," Brathwaite said in an e-mail on Thursday evening.

Sears, which has posted 18 straight quarters of sales declines, is scheduled to report annual results on February 23, when Chairman and biggest shareholder Edward Lampert typically publishes a letter to shareholders.

(Reporting by Dhanya Skariachan)