Sears Canada announced it's laying off 700 employees nationwide.
The majority of the layoffs will be at stores and distribution centres, the company stated, adding 40 people at company headquarters will also be laid off.
It's expected 360 people will be laid off from stores and 300 will be from distribution centres.
The largest cut will be at a distribution centre in Belleville, Ont., which is expected to lose 120 jobs.
Despite the layoffs, the company isn't planning to close any stores, the press release stated.
The department store has seen revenue decline since 2006, and is facing more competition as Walmart and Target expand in Canada, although Sears has a larger focuses on appliances and mattresses.
Last year, prices were reduced on thousands of items to try and attract more shoppers.
In December 2011, Sears Holdings, the parent company of Sears Canada, announced the closure of 100 Sears and Kmart stores due to a decrease in sales.