J.C. Penney To Cut Thousands Of Jobs, Close Dozens Of Stores
PLANO (CBSDFW.COM/AP) – Department store operator J.C. Penney says it will cut 2,000 jobs and close 33 stores as it tries to turn around results. A company statement says all of the closing stores were “underperforming.” None of the closing stores are located in Texas.
The news comes after J.C. Penney earlier this month said it was pleased with holiday results but declined to give sales figures. A strong November and December is crucial to retailers since it can account for up to 40-percent of annual sales.
“While it’s always difficult to make a business decision that impacts our valued customers and associates, this important step addresses a strategic priority to improve the profitability of our stores and position JCPenney for future success,” CEO Myron E. Ullman III said in the statement.
The cuts should save more than $65 million annually. The Plano-based company will take $26 million in charges in the third quarter and $17 million afterward. Penney has 116,000 staffers. All the job cuts are related to the store closings.
Penney is trying to recover from a sales spiral that occurred under former CEO Ron Johnson. The company brought back former CEO Ullman in April.
(©2014 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 This material may not be published, broadcast, rewritten, or redistributed.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.)
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