2012 Announced Layoffs: 4,700
Stock Performance Since Announcement: -48%
Speaking of direction …
JCPenney (NYSE:JCP) has been a headliner all year, with CEO Ron Johnson trying to bring the once-popular retailer back to glory. Unfortunately, the result still remains a tangled mess.
The right-sizing effort is aimed at helping to cut costs while Johnson plows millions in hopes of transforming the stores. So far, he’s 1-for-2. Revenues have been abysmal, with the past three quarters showing contractions of more than 20% each! And it looks like the holiday season didn’t help things, either. Analysts say same-store sales might have declined as much as 30%.
Perhaps the only sign of “life” was a slightly narrower overall loss in the third quarter, but that’s a pretty tarnished silver lining. I doubt fewer clerks will be what saves JCP.