Kmart Cuts 680 Jobs to Save $66M

Kmart announced a plan to cut costs by immediately eliminating 400 positions at its corporate headquarters and another 50 jobs that provide corporate support, The Wall Street Journal reports. The beleaguered retail chain will also eliminate about 100 positions that are currently open and begin phasing out about 130 contract positions. The discount retailer expects the cost-cutting moves will save $66 million for the 2002 fiscal year and $130 million annually. The affected employees will be notified this week.

In addition to the job cuts, it will continue looking for ways to control and cut costs, including eliminating low-priority projects, re-engineering work processes and consolidating workloads, Kmart says.

Kmart made 23 cuts last week at its headquarters and 35 in July from its accounting division, according to the Associated Press.

Moderator Comment: Is Kmart management moving aggressively enough to turn the company around?

Kmart seems content to reduce its expenses and workforce at a leisurely pace. Meanwhile, its remaining employees are waiting for the other shoe to drop. We're not sure what's taking so long. Further pain can't be avoided. It's better (and more humane) to get it done and over with than demoralizing associate morale in increments as the company has been doing. [George Anderson - Moderator]

• Kmart to Trim Jobs in Cost-Cutting Move - The Wall Street Journal (subscription required)