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These 4 Companies Aren’t Much Better After Big Layoffs

Citi, HP, JCPenney and Pepsi find little relief despite cuts

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J.C. Penney (NYSE:JCP)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.

JCP’s layoffs started with the shop floor in January and then the executive suite in June. Johnson canned almost 5,000 workers first, but later lost one of his newly hired subordinates.

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.

Article printed from InvestorPlace Media,

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