Kmart Corp. (Troy, Mich.) has announced the restructuring of its corporate and headquarters operations, as part of its plan to reorganize and emerge from Chapter 11 bankruptcy protection by the end of this month.
The mass-merchandise discount retailing giant will eliminate approximately 400 positions at its corporate headquarters and 123 positions located nationally that provide corporate support. The company also will eliminate 137 positions that are currently open. It said Kmart stores and distribution centers are not impacted by this initiative.
“The realignment and restructuring of our corporate headcount and operations to more closely support our stores is absolutely critical to Kmart's future success after it completes its Chapter 11 reorganization,” president and ceo Julian Day. “We continue to take the necessary actions to create a financially healthy, cost-effective organization that is positioned to compete in the discount sector.”
Day said this cost-reduction initiative realigns the organization to better reflect the company's ongoing business needs following the completion of its Chapter 11 store closure program and also reflects the “new” Kmart's disciplined, low-risk approach to managing its business.