International News - Kmart axes jobs as Chapter 11 exit approaches

US discount retailer Kmart is to cut 660 jobs in a second wave of redundancies that will save the business US$150 million (£95.3 million) a year.

The grocer, which filed for bankruptcy in January last year, is to cut 400 jobs from its head office in Michigan, while the remaining cuts will affect corporate support-roles elsewhere.

The move will reduce Kmart's head office staff by 15 per cent. Staff in stores and distribution centres are not affected by the cuts.

Kmart president and chief executive Julian Day said: 'We continue to take the necessary actions to create a financially healthy, cost-effective organisation that is positioned to compete in the discount sector.'

Kmart is to exit its Chapter 11 period later this month.