Sears announced Tuesday a restructuring program to deliver $1.25 billion in annualized cost reductions, according to a press release, including cutting some 400 full-time jobs at its corporate offices, support functions globally and field positions as well as the store closures the company announced last week. "Combined with the restructuring actions announced since the beginning of the fiscal year, Sears Holdings has actioned nearly $1.0 billion in annualized cost savings to date and is on track to deliver $1.25 billion in annualized savings through actions taken in fiscal year 2017," noted the press release.
Sears shares were down nearly 2%, to $6.89, at 1:07 p.m., EDT.
Meanwhile, Sears Canada weighed in with devastating news of its own on Tuesday.
The Canadian company said that cash flows from sales "are not expected to be sufficient to meet obligations coming due over the next 12 months," after reporting a first quarter loss.
Sears Canada said that it was exploring possible alternatives, including a potential sale, and that it has hired BMO Capital Markets as a financial adviser. Sears Canada shares were down to 67 cents, about 27%.
Sears Canada is a separate publicly traded company, spun off from Sears Holdings in 2012. While Sears Holdings has about a 12% stake in Sears Canada, the company in Canada has its own balance sheet, management team and board of directors.
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