Sears to Sear HQ Workforce

Mar 24, 2003
George Anderson

By George Anderson

Crain’s Chicago Business reports Sears plans to cut hundreds of headquarters’ jobs to help the retailer meet its goal of increasing earnings per share by 50% by the end of the company’s 2004 fiscal year.

The retailer is looking for a workforce reduction to help offset declining store sales and credit card revenues. Crain’s reports five to seven percent of Sears headquarters personnel will be affected by the job cuts.

Moderator’s Comment: What is your reaction to the report
of impending job cuts at Sears?

An internal memo from Alan Lacy, chairman and chief executive
officer, Sears to employees of the chain reportedly says, “If we are to compete
effectively long term, we must continuously reduce our cost structure. Each
business and function is reviewing its plan to reduce costs as much as possible.”

Clearly, Mr. Lacy did not consider his 78 percent increase
in salary and bonuses in 2002 to be an impediment to Sears’ ability to compete.
(See RW, 3/21/03, CEO’s Pay Goes Up As Stock
Price Falls
.) Mr. Lacy’s words and actions demonstrate he is not the leader
Sears and its stakeholders need or deserve. [George
Anderson – Moderator

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