HAMMOND | Cabela's is cutting 40 full-time workers this week at each of its Chicago-area stores in an attempt to make them more profitable, a company spokesman said Thursday.

"Economic conditions are pretty tough, and we had to look at making our stores more profitable," spokesman David Draper said. "At the Hammond store particularly, we're working on profitability and had to adjust payroll affecting full-time employees.

"Some store are doing well," he said. "Some are more challenging. We're making cuts at the Hammond and at the Hoffman Estates (Ill.) store. Those stores aren't performing up to expectations because of the economy."

During Cabela's fourth-quarter conference call with analysts a week ago, company officials said three of the eight stores the outdoor outfitter opened in 2007, which included the Hammond and Hoffman Estates locations, were underperforming. They had declined to name the locations.

Cabela's operates 26 retail locations and plans to open two additional stores this year.

The Hammond store hired about 420 workers, with an equal number of them full and part time, when it opened in October. Besides the 40 let go this week, about 130 workers have left Cabela's since it opened "through attrition," Draper said.

Part-time employees saw their hours cut significantly in January, and there has been a restructuring in the management roles, Draper said. Managers had to reapply for their jobs, and a unknown number were changed from salaried positions as managers to hourly jobs as team leaders.

There still will be about 250 employees at the Hammond store, Draper said.

The workers cut will remain on the payroll until the end of the week, be given an additional 80 hours of pay and have full benefits through March, he said.

"It's a challenging retail market all over," Draper said. "A challenging economic climate."