Closing 283 stores just didn’t cut it — the budget, that is. Almost eight months after filing for chapter 11, Kmart Corp. today announced an initiative to reduce costs within the company. Upon its completion, the project targets an annual savings of $130 million.

To make it happen, Kmart is focusing on eliminating low-priority projects, re-engineering work processes and consolidating workloads. Kmart chairman and CEO James B. Adamson said the cost-reduction initiative realigns the organization to reflect the company's current business needs in light of its recent store closures.

That’s a euphemism for layoffs. Starting today, Kmart is cutting 400 positions at corporate headquarters and 50 corporate support positions located elsewhere; the floundering discount juggernaut will also eliminate approximately 100 current open positions. And desparation has no biases: Kmart will begin phasing out approximately 130 contract positions, too.

"This cost reduction initiative is absolutely critical to our reorganization," Adamson said. "We had no alternative but to take this action... the company continues to take the steps necessary to return to financial health and regain the confidence of its many stakeholders."

Where stores were once getting pink slips, it’s now employees’ turn. For now, Kmart stores and distribution centers are not impacted by this cost-reduction initiative.