Kmart conducting corporate level layoffs
March 12, 2003-- Home Textiles Today,
Troy, MI — Kmart began laying off senior management on Monday, in accordance with its previously announced intention to whittle the corporate staff in line with its store base reduction of 316 units.
"We're evaluating the senior management team first so we can put a new one together in time for the bankruptcy exit," said Jack Ferry, spokesman. He declined to say how many people were let go on Monday, but said that, by the end of the month, the corporate staff will be reduced by about 25 percent to 30 percent, including open positions. As of Jan. 1, the corporate staff numbered 2,900 people.
Ferry said that the company will first figure out how many people it needs at its headquarters and then make the appropriate cuts. After it completes the reductions, it will notify its employees first, he said, and then make a public announcement.
Kmart had a similar strategy last year, he said, when it reduced its store base by 283 stores and cut about 680 positions.
Kmart plans to exit bankruptcy by April 30.
Related Content By Author
Countdown to Intertextile Shanghai