Kmart Cuts Top Managers Mar 12, 2003

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Kmart Corp. began the latest round of layoffs at its corporate headquarters in Troy, MI, U.S., letting go more than a dozen senior executives. As many as hundreds of employees could be terminated later this month as Kmart gets ready to come out of bankruptcy by April 30 with a third fewer stores.

"As the company stated previously, we are reducing our corporate overhead to align with the reduced size of our store base and reflect the needs of the new Kmart, post emergence," Lori McTavish, a Kmart spokeswoman, said.

She said Kmart was first evaluating its senior management team and would eliminate 25 to 35 percent of senior level positions, including open positions, at its headquarters. It will then decide which of its remaining 2,900 headquarters workers would be let go.

A person familiar with the situation said more than a dozen managers holding titles such as senior vice president and division vice president were the first to lose their jobs and that another 500 to 1,000 headquarters employees will follow as Kmart's restructuring hits the home stretch. (Detroit Free Press)

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