Sears to cut 400 jobs, says on track to meet savings target

U.S. retailer Sears Holdings Corp said on Tuesday it would cut 400 full-time jobs at its headquarters in Illinois as part of its plan to save more than $1 billion in costs annually.

The company, which has not reported an annual profit in the past six years, also said it was on track to meet its target of saving $1.25 billion in costs this year.

Sears said the bulk of the layoffs were related to its corporate workforce at its Hoffman Estates, Illinois headquarters.

Sears, controlled by billionaire investor Eddie Lampert, also said it would cut a "small fraction" of jobs related to stores it shuttered last week. The company has laid out plans to close 150 stores this year.

Sears, once the largest U.S. retailer, has been struggling to turn around its business for years amid intensifying competition from Wal-Mart Stores Inc and Amazon.com Inc.

In March, Sears raised doubts about its ability to continue as a going concern following years of losses and declining sales.

A tepid U.S. retail market in recent months has forced Sears and other retailers including Macy's Inc (M.N) to close stores and cut costs.

Sears said on Tuesday cost-cutting efforts had helped it save nearly $1 billion so far this fiscal year.