Sears Holding Corp (NASDAQ: SHLD) stocks dipped may be due to their announcement of the company restructuring early on trading day Tuesday. Their goal is to streamline its operations and deliver cost savings. Bigger Stores such as Sears a known to not be as adaptive when it comes to a changing economies due to its sheer size.
According to their press release, “As part of the Company's ongoing efforts to simplify its organizational structure and enabling greater consolidation of the Sears and Kmart corporate and support functions, approximately 400 full-time positions at our corporate offices and support functions will be eliminated. The majority of these positions are related to the corporate workforce at Sears Holdings' headquarters in Hoffman Estates. In addition, certain positions at our field operations will be impacted by these restructuring actions. While the total number of people who are directly affected represents a small fraction of our total headcount, we are conscious of the impact on individual employees. We are providing eligible associates severance compensation and transition assistance. As part of the organizational restructuring, the company first eliminated open positions and reduced contract employees in an effort to minimize the impact on full-time employees.”
Edward S. Lampert, Chairman and Chief Executive Officer of Sears Holdings sheds light on this news by adding, "We are making progress with the fundamental restructuring of our operations that we initiated in February…We remain focused on realigning our business model in an evolving and highly competitive retail environment. This requires us to optimize our store footprint and operate as a leaner and simpler organization."