Kmart Cuts 680 Jobs to Save $66M
Kmart announced a plan to cut costs by immediately eliminating 400 positions at its corporate headquarters and another 50 jobs that provide corporate support, The Wall Street Journal reports. The beleaguered retail chain will also eliminate about 100 positions that are currently open and begin phasing out about 130 contract positions. The discount retailer expects the cost-cutting moves will save $66 million for the 2002 fiscal year and $130 million annually. The affected employees will be notified this week.
In addition to the job cuts, it will continue looking for ways to control and cut costs, including eliminating low-priority projects, re-engineering work processes and consolidating workloads, Kmart says.
Kmart made 23 cuts last week at its headquarters and 35 in July from its accounting division, according to the Associated Press.
Moderator Comment: Is Kmart management moving aggressively
enough to turn the company around?
Kmart seems content to reduce its expenses and workforce
at a leisurely pace. Meanwhile, its remaining employees are waiting for the
other shoe to drop. We’re not sure what’s taking so long. Further pain can’t
be avoided. It’s better (and more humane) to get it done and over with than
demoralizing associate morale in increments as the company has been doing. [George
Anderson – Moderator]