Sears Canada (TSX:SCC) announced Thursday it is laying off 700 workers across the country as part of a move to "right-size" the company and focus on restructuring its business.
The national retailer says 360 people are being laid off from its department stores and about 300 from its distribution centres. The remaining workers are being let go from head office and other support areas.
The job cuts will be across Canada.
"This is part of our initiative to right-size the organization, which is working in concert with other initiatives to make Sears successful," said Sears spokesman Vince Power in a statement.
The city of Belleville in eastern Ontario, where Sears has a distribution centre that deals with small-ticket catalogue and online sales, will lose 120 jobs, the largest single cut in the current round of downsizing.
A distribution centre in Regina, which also deals primarily in smaller items for western customers, will lose 80 jobs. There will be smaller job losses at distribution centres in the Toronto and Montreal areas, which deal more with larger items, and at two small distribution centres in Calgary and Vancouver.
By contrast, the job losses at Sears retail operations will be smaller, in the range of two to four people per store.
At the Sears department store in Kelowna two employees at the management level were laid off Thursday.
Power said the distribution centres are feeling a bigger impact because "over time we've been able to improve some processes, so we're able to do more in the distribution centres."
"And also we didn't want to affect customer service in the stores."
Sears Canada has been revamping operations to encourage more customers to return to its stores after years of declining sales, and also to prepare for the entry of numerous U.S. retailers, including discount chain Target (NYSE:TGT).
In a report assessing the impact of Target's arrival, released last fall, Barclays Capital said that Sears Canada, Walmart, Old Navy, Loblaw's Joe Fresh brand and Canadian Tire are the retailers most at risk.
The company has 195 corporate stores, 269 hometown dealer stores, eight home services show rooms and more than 1,500 merchandise pick-up locations.
Read more Business News
- 15-year-old indicted on murder chargeWorld - 9:25 pm
- Ex councillor named in sex assault casePenticton / S. Okanagan - 4:45 pm
- Accused bad driver in more troubleKelowna - 4:23 pm
- Return of the Snowbirds?Poll - 5:00 pm
|QHR Technologies Inc||1.16||-0.02|
|Anavex Life Sciences||0.438||+0.043|
|Copper Mountain Mining||2.29||0.00|
|Sunrise Resources Ltd||0.035||+0.005|
|Mission Ready Services||0.295||0.00|
This past Sunday I drove from Kelowna to Powell River. For those of you who’ve never had to, particularly in winter, it means rising in the wee hours; managing a treacherous journey on the Coqui...
This time last week the biggest search phrase on Google was “Powerball”. I thought it was perhaps a new App for the iGalaxy or SamPhone, but apparently not. It is in fact a US based lotte...
The budget should allow more competition from smaller lenders which will keep banks competitive and make dealing with a mortgage broker even more important. "The government has promised that th...