Sears Holdings layoffs, on the record
Every job cut, severance charge and restructuring Sears Holdings reported in its annual reports, 2016 to 2018, quoted from the filings. Headcount went from approximately 178,000 to approximately 89,000.
Headcount, as reported
| Annual report | Employees | As of |
|---|---|---|
| 10-K for 2016 | approximately 178,000 | At January 30, 2016 |
| 10-K for 2017 | approximately 140,000 | At January 28, 2017 |
| 10-K for 2018 | approximately 89,000 | February 3, 2018 |
Job cuts, severance and restructuring
Our summaryClosed stores in the Kmart segment and Sears Domestic segment during 2015, including store closing costs and severance recorded for the year.
Word for word“During 2015 , 2014 and 2013 , respectively, we closed 38 , 173 and 70 stores in our Kmart segment and 12 , 61 and 23 stores in our Sears Domestic segment that we previously announced would close.” 10-K for 2016
Our summaryRecorded severance costs as part of store closing costs for 2015.
Word for word“Total 2015 costs $ 44 $ 37 $ 6 $ 11 $ 3 $ 101 Kmart $ 54 $ 32 $ 42 $ 14 $ 23 $ 165 Sears Domestic 14 14 21 6 14 69 Sears Canada 1 10 5 — — 16 Total 2014 costs $ 69 $ 56 $ 68 $ 20 $ 37 $ 250 Kmart $ 45 $ 10 $ 16 $ 18 $ 12 $ 101 Sears Domestic 11 (3 ) (39 ) — 12 (19 ) Sears Canada 1 52 — 2 — 55 Total 2013 costs $ 57 $ 59 $ (23 ) $ 20 $ 24 $ 137 _____________ (1) Recorded within cost of sales, buying and occupancy on the Consolidated Statements of Operations.” 10-K for 2016
Our summaryMade decisions to close additional stores and distribution centers, with some stores closed in 2014 and 2015 and supply chain distribution centers closed in 2014.
Word for word“We made the decision to close 78 , 118 and 113 stores in our Kmart segment and 14 , 47 and 32 stores in our Sears Domestic segment during 2015 , 2014 and 2013 , respectively; and we also made the decision to close 6 domestic supply chain distribution centers in our Kmart segment and 1 domestic supply chain distribution center in our Sears Domestic segment during 2014.” 10-K for 2016
Our summaryExpects to record additional store closing charges in 2016 related to stores previously decided to close.
Word for word“We expect to record additional charges of approximately $5 million during 2016 related to stores we had previously made the decision to close.” 10-K for 2016
Our summaryRecorded closed store reserve and severance charges as an adjustment in Adjusted EBITDA for 2015.
Word for word“Closed store reserve and severance 98 224 130 Domestic pension expense 229 89 162 Other expenses (1) (64 ) 50 — Amortization of deferred Seritage gain (52 ) — — Impairment charges 274 63 233 Adjusted EBITDA (836 ) (708 ) (337 ) Lands' End separation — (10 ) (150 )” 10-K for 2016
Our summaryInitiated a restructuring program targeted to deliver at least $1.0 billion in annualized cost savings, including reducing corporate overhead and integrating Sears and Kmart operations.
Word for word“In February 2017, we initiated a restructuring program targeted to deliver at least $1.0 billion in annualized cost savings.” 10-K for 2017
Our summaryPreviously announced closure of 108 Kmart and 42 Sears stores, with cost reductions included in the restructuring savings.
Word for word“The anticipated savings also include cost reductions from the previously announced closure of 108 Kmart and 42 Sears stores.” 10-K for 2017
Our summaryCompany noted it now operates with fewer employees following restructuring and workforce changes.
Word for word“Also, we now operate with fewer employees, who have assumed additional duties and responsibilities.” 10-K for 2017
Our summaryClosed 206 Kmart and 37 Sears Domestic stores during 2016 that had been previously announced for closure, with store closing and severance costs recorded.
Word for word“During 2016 , 2015 and 2014 , respectively, we closed 206 , 38 and 173 stores in our Kmart segment and 37 , 12 and 61 stores in our Sears Domestic segment that we previously announced would close.” 10-K for 2017
Our summaryExpects additional store closing charges related to stores and distribution centers previously decided to close.
Word for word“We expect to record additional charges of approximately $44 million during 2017 related to stores and distribution centers we had previously made the decision to close.” 10-K for 2017
Our summaryStarted a restructuring program in 2017 aimed at large annual cost savings, including lower corporate overhead and closing Kmart and Sears stores.
Word for word“In 2017, we initiated a restructuring program targeted to deliver at least $1.25 billion in annualized cost savings.” 10-K for 2018
Our summaryClosed about 435 stores in 2017 and expected to close 103 more previously announced stores by the end of the first quarter of 2018.
Word for word“In 2017, we closed approximately 435 stores, and an additional 103 stores previously announced for closure are expected to be closed by the end of the first quarter of 2018.” 10-K for 2018
Our summaryReported store closing costs and severance for 2017 in the Kmart and Sears Domestic segments, with severance a part of the total.
Word for word“Total 2017 costs $ 227 $ 83 $ 120 $ 32 $ 40 $ 502 Kmart $ 187 $ 28 $ 71 $ 32 $ 13 $ 331 Sears Domestic 39 13 5 9 7 73 Total 2016 costs $ 226 $ 41 $ 76 $ 41 $ 20 $ 404 Kmart $ 39 $ 16 $ 21 $ 10 $ 1 $ 87 Sears Domestic 5 21 (15 ) 1 2 14 Total 2015 costs $ 44 $ 37 $ 6 $ 11 $ 3 $ 101 _____________ (1) Recorded within cost of sales, buying and occupancy in the Consolidated Statements of Operations.” 10-K for 2018
Our summaryExpects further charges in 2018 for stores already decided on for closure but not yet closed.
Word for word“We expect to record additional charges of approximately $55 million during 2018 related to stores we had previously made the decision to close, but have not yet closed.” 10-K for 2018
| Fiscal year ended | Restructuring charges | Restructuring costs incurred | Cash paid for restructuring |
|---|---|---|---|
| 2017-01-28 | $404 million | $404 million | $131 million |
| 2018-02-03 | — | $502 million | $265 million |
Sears Holdings filed 2 restructuring notices (Form 8-K, Item 2.05) since 2016. This page shows what the company reported to the SEC, not news reports or state layoff notices.
Read from Sears Holdings’s annual reports (10-K for 2018, 10-K for 2017, 10-K for 2016) and the financial data it files with the SEC, as of 2018-03-23. Every quotation is word for word from the filing linked beside it; how these pages are built and checked. The full record is in its company data sheet.