Lands' End, the apparel retailer owned by Sears, Roebuck and Co, is to axe 375 jobs amid a restructuring of its business operations "to respond to changing customer shopping habits."

The company said its Cross Plains call centre, which employs nearly 200 people, would close on 5 June and that another 175 jobs at its Dodgeville headquarters and call centre have already been terminated.

The company said its decision was based on declining catalogue sales and the fact that more customers are using the Internet to place orders.

Land's End is also reorganising its merchandising, design, inventory, quality and sourcing resources to work across all departments instead of specialising in children's, women's and men's apparel. The Internet operations will be integrated into each functional area.

Sears bought Lands' End for $1.9 billion nearly three years ago and is in the midst of being taken over talks by Kmart Holdings Inc.