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DETROIT - Kmart Corp. began the latest round of layoffs at its corporate headquarters in Troy on Monday, letting go of more than a dozen senior executives, the Detroit Free Press reports. 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.
McTavish could not say how many layoffs took place Monday.
A person familiar with the situation told the newspaper that the layoffs included more than a dozen managers holding titles such as senior vice president and division vice president. He added that another 500 to 1,000 headquarters employees would follow.