By David George-Cosh 
 

TORONTO--Sears Canada Inc. (SCC.T) said Wednesday that it has struck an outsourcing deal with International Business Machines Corp. (IBM) to help manage the retailer's customer support business.

The transfer is set to take place over the next nine months and affect 1,345 employees, the retailer said in a statement.

Additionally, 283 employees at Sears Canada's logistics arm will be laid off effective immediately, the company said.

Sears Canada is 51%-owned by Sears Holdings Corp. (SHLD).

"These types of decisions are not made without considerable thought and deliberation," said Doug Campbell, president and Chief Executive of Sears Canada, in a statement.

"We are planning for the future of Sears Canada and taking steps now that will allow us to continue serving customers as a viable national retailer coast to coast in stores and through our Direct channel now and in the future."

In November, Sears Canada said it would cut nearly 800 jobs in its head office and its repair services and parts business as it sheds assets that do not align with its core retail operations.

The company has also scaled back on some of its retail locations across Canada, including some of its Toronto stores.

According to Sears Canada's website, the company employs more than 25,000 people.

Write to David George-Cosh at david.george-cosh@dowjones.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

Sears (CE) (USOTC:SHLDQ)
Historical Stock Chart
From Mar 2024 to Apr 2024 Click Here for more Sears (CE) Charts.
Sears (CE) (USOTC:SHLDQ)
Historical Stock Chart
From Apr 2023 to Apr 2024 Click Here for more Sears (CE) Charts.