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J. C. Penney cuts 360 jobs

RBR Staff Writer Published 05 March 2018

American department store chain J. C. Penney has slashed 360 jobs, including 130 at its headquarters in Plano, Texas.

The company announced strategic realignment of its senior leadership team and started personnel actions to streamline job functions and reduce expenses.

It estimates that the restructuring can help save between $20m and $25m.

The job cuts have taken place across various departments. Additionally, the company restructured its group, regional, district and store support teams.

This restructure, as per the company’s claims, has eliminated bureaucracy, reduced support positions and reallocated store headcount to customer-facing positions.

It also stated that after the restructuring took place, a majority of impacted associates assumed new role or leadership position within the stores, about 230 positions were removed.

JCPenney chairman and CEO Marvin Ellison said: "As the Company continues to make progress on its strategic framework and implement new processes and organizational efficiencies, it is imperative that we maintain a thoughtful approach to managing expenses, while effectively supporting the needs of the business."

Recently, the company posted a net income of $254m for the fourth quarter, compared to the $192m for the same period during last year.

Its sales increased 1.8% to $4.03bn for this year’s fourth quarter, compared to $3.96bn for the same period last year.

The restructuring allowed the majority of affected associates to assume a  new role or leadership position within the stores organization.

The company appointed Joe McFarland as executive vice president and chief customer officer, a newly-expanded role that includes responsibility for merchandising, as well as leading all JCPenney store operations. 

Therace Risch will take over the combined titles of chief information officer and chief digital officer to reflect her added responsibility for omnichannel retail.

J. C. Penney combines a footprint of about 875 stores across the US and Puerto Rico with an e-commerce site.

Image: J. C. Penney store in Brooklyn. Photo: Courtesy of J.C. Penney Corporation, Inc.