JCP Cutting 900 Jobs

J.C. Penney Cuts 900 Jobs as Firm Streamlines Operations

J.C. Penney Co. Inc.’s reinvention is impacting its head count.

About 600 associates are being let go at Penney’s Plano, Tex., headquarters, primarily in merchandising, planning and allocation and marketing, according to the company. The headquarters has 5,900 employees.

In addition, the company’s call center in Pittsburgh will shut down on July 1, affecting another 300 employees.

The $17.3 billion, 1,100-unit chain on Thursday said the price simplification, re-merchandising on monthly cycles, marketing and cost-cutting initiatives — all at the core of the four-year reinvention strategy — enabled the personnel cuts. There was no word on whether there would be personnel reductions at stores.

“Often in business, companies must streamline in order to leap forward,” said Ron Johnson, Penney’s chairman and chief executive officer. “In our case, this has involved some very difficult decisions that have had an impact on many of our associates, but these changes are essential to help us achieve our long-term goals and, ultimately, grow our associate base as we grow our business.”

courtesy WWD