It is always regrettable to see an advance notification our state requires when an employer plans a major reduction in workforce or plans to go out of compliance with state and local incentive agreements during the holiday season and my heart goes out to anyone affected, especially if word reaches them before Christmas.
It appears Kmart is planning substantial layoffs to commence during or right after the holiday season. The law requires Sears Holdings to file a WARN Act notification about 60 days before substantial layoffs take effect. We have not seen that yet in our office, but those usually are filed at around the same time employees learn about layoffs themselves. What usually arrives first is a confidential notice a company plans to materially change or abandon a Payment In Lieu Of Taxes (PILOT) agreement with a state, county, or municipality. Ours requires 90 days notice of any material change that would disrupt an incentive agreement but we cannot publicly disclose it until WARN Act required notifications occur. Sears Holdings is filing material change notifications and these impact Kmart retail stores. Because of the scope and nature of the advance notifications, I fear this means the imminent closure of a large number of Kmart retail stores and likely layoffs at those remaining. In either case, the changes will put Sears Holdings below the minimum number of employees required to stay in compliance with their tax abatement or incentive agreements, at least in this state.
As employees, you may have a much better sense about the likely impact this will have on Kmart and I do not have that information. I hate to worry people, but having once been laid off myself right after the holidays, I probably would have appreciated knowing it was coming before I splurged on Christmas gifts with money that I would later need to endure a winter of unemployment.
(Disclosure: I am a state government employee and do not work for Sears or Kmart.)