NEW YORK (AP) – J.C. Penney Co. says it is laying off 350 more workers at its headquarters in Plano, as the department store struggles to transform its business under a new CEO.
The cuts, announced Tuesday, follow the company’s move in April to eliminate 600 workers at its headquarters.
University of North Texas Economist Dr. Terry Clower spoke with NewsRadio 1080 KRLD and said the move was inevitable.
“Certainly they were going to be looking to consolidate some activities within their operation that were going to produce labor savings. This is just simply a matter to address a shortfall in revenue.”
Penney is cutting costs amid the difficult task of turning around its business. It is overhauling every aspect of its operations, from a new pricing plan to new brands. The new pricing plan, which cuts hundreds of sales events, has turned off shoppers. The company reported a bigger-than-expected loss and a 20 percent drop in revenue in the first quarter.
Penney now has 3,100 workers at its headquarters, a 29-percent reduction from the 4,400 employees it had before the layoffs this spring.
(©2012 CBS Local Media, a division of CBS Radio Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)
Also Check Out: