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JC Penny to cut 2,200 jobs amidst continued sales decline

RBR Staff Writer Published 08 March 2013

US retail major JC Penny plans to reduce an additional 2,200 jobs amidst the continued decline in sales as a consequence of its revamp strategy.

Personnel to be eliminated include those in back-office administration roles in stores and district offices as well as some store leadership positions.

JC Penny spokesperson Joey Thomas confirmed to Bloomberg today that 10% of the retailers 1,100 store portfolio had reduced their headcount amidst falling sales volumes.

"As with any reduction in force, we do our best to absorb those impacted into other positions if they choose to do so. Impacted team members were given 30 days notice, so their last day would not be effective until April 6. Those who are benefits eligible will receive a severance package and outplacement assistance," explained Thomas.

The revamp plan was outlined by CEO Ron Johnson but has struggled to gain the expected traction and has resulted in 19,000 jobs being lost over the last one year.

The retailer's revenues fell 25% to $13bn for the 2012 fiscal year ended 2 February 2013, the lowest returns since 1987.