Struggling retailer Sears Canada is to axe another 1,600-plus jobs as the company looks to drive efficiencies and cut costs.

The company said it had signed an agreement with IBM to outsource the work currently performed at three Sears customer contact centres, resulting in the loss of 1,345 jobs over the next nine months.

Meanwhile, the reorganisation of the company’s logistics functions will see another 283 jobs lost immediately, Sears said.

The job cuts come on top of a further 1,600 redundancies in recent months, as Sears Canada reduces its headcount from some 30,000 people.

The company said the IBM agreement would allow it to “realise significant capability upgrades”, improving the experience for its customers.

“These types of decisions are not made without considerable thought and deliberation,” said Sears Canada president and CEO Doug Campbell.

“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 reported a wider third quarter loss of CAD48.8m (US$46.8m) and revenues down 6.4% to CAD982.3m.