JCPenney Cuts 2K Jobs, 33 Stores
Retailer apparently still smarting from disastrous strategy
By Newser Editors and Wire Services
Posted Jan 15, 2014 6:42 PM CST
FILE - In this April 9, 2013 file photo, a customer leaves a J.C. Penney store in New York. J.C. Penney on Wednesday, Jan. 15, 2014 announced it will cut 2,000 jobs and close 33 stores as it tries to...   (Mark Lennihan)

(Newser) Struggling JCPenney will cut 2,000 jobs and close 33 stores as it tries to get back on the path to profitability. The news raises concerns that Penney's holiday season sales were weaker than expected and that the chain needs to do even more to recover from a turnaround plan that has had disastrous results. The cuts announced today should save more than $65 million annually. Penney has 116,000 staffers and operates more than 1,100 stores.

Penney is trying to recover from massive losses and plummeting sales drops that occurred under former CEO Ron Johnson, who was ousted in April after being on the job for 17 months. The company then brought back former CEO Mike Ullman. Penney has since reinstated the frequent sales events that Johnson ditched. It's also restored basic merchandise, particularly store brands like St. John's Bay, which were either phased out or eliminated in a bid to attract younger, more affluent shoppers.

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Showing 3 of 18 comments
iq145
Jan 16, 2014 10:08 PM CST
They're a disaster: http://www.newser.com/story/163735/its-true-jcpenney-is-a-disaster.html Now they're begging for help: http://www.newser.com/story/167222/new-jcpenney-ad-were-sorry-come-back.html Too bad. i used to like JCP...
Ezekiel 25:17
Jan 16, 2014 4:03 PM CST
Like people mention, the yesteryears of JCP were the finest ones. Just before the first remodeling of the stores several years ago, they were fine with me. Then they compartmentalized for the first time and went to the flat line pricing scheme with no sales. For a while, they did not even have clearances. Clearance goods went from $10.99 to $15. That infuriated me and thankfully they fired that CEO. Then came the second wave of encapsulating the divisions and that totally pissed me off. I went in to find a Co2 canister for my drink gizmo and the lady said, "Sorry, you need to go to Walmart." Really, anytime you sell something based on refills you need to carry the refills. So now the new CEO who did all that crap fires a bunch of people to protect his hefty salary. JCP, better tow a careful line or you will go into the wind like Haliburtons, John A. Browns, and Rothchild's.
secondalto
Jan 16, 2014 3:21 PM CST
As a former JCP employee, this is karma for the way they treat their employees.