Peoria, Illinois-based Caterpillar Inc, announced last week that it is planning to close its Aurora, Illinois plant by the end of 2018. The closure will result in the loss of about 800 jobs. The plant makes large-wheel loaders and compactors for construction and other industrial uses.
The facility will retain about 400 of its total 1200 workers, including those in product support and engineers.
Nearly three months ago the company first revealed that it was considering the closure of the plant, which is in a suburb of Chicago, and moving the jobs to different locations in Little Rock, Arkansas and Decatur, Illinois.
The 800 out of work employees will be allowed to apply for positions in other facilities owned by Caterpillar.
In a major restructuring bid which will cost the company upwards of $1 billion, Sears Holdings Corp will be laying off 130 employees from their executive offices in Hoffman Estates, Illinois. The company announced that the layoffs are due to a slowing of their traditional retail business.
The details of the firings were elaborated in an email sent by the Sears CEO, Eddie Lampert to the employees at headquarters, on Thursday.
Lampert stated in the memo that the layoffs are part of their cost-cutting plan which are
“necessary to create a more nimble operating structure capable of driving the company’s strategic transformation forward.”
Lampert has already announced earlier this month that Sears will be closing 150 stores over the next two months. Lowering overhead, especially at the corporate level, is also part of the plan.
Sears posted a 16 percent loss in revenue during the fourth quarter of 2016, about $6.1 billion. The hopeful holiday season proved flat for Sears, so cost-cutting seems the best choice to staying in business.
Two major trends have taken their toll on the iconic retail department store chain, which also owns Kmart stores: more on-line sales, and slower mall traffic. Over the past eight years the company has most likely lost about $9 billion as their traditional business model has come under increasing pressure.
About 100 workers at the Sears Hoffman Estates headquarters have been laid off, according to Sears Holdings spokesperson Howard Riefs.
Riefs said that the giant retailer is struggling to streamline its operations with the goal of reduced expenses while still “managing the strategic needs of the business.”
“This represents a mix of positions in various departments across the organization,” Riefs added. “These decisions are never taken lightly, but they are a necessary part of our efforts to transform the company and return it to profitability. We are committed to treating these associates with respect and compassion during this process. Eligible associates will receive outplacement services and severance to assist in their transition.”
Sears has been experiencing pressure from Wall Street to reel in expenses since the company has been in the red in recent years. Sears Holdings Corporation has 20,000 les employees as compared to one year ago, and has been experiencing losses for two years as of today.