Struggling JCPenney Lays Off 2,200 Workers

by Christopher Freeburn | March 7, 2013 10:39 am

JC Penny 1 300x199 Struggling JCPenney Lays Off 2,200 Workers[1]Struggling department store chain J.C. Penney (NYSE:JCP[2]) is implementing yet another round of layoffs[3]. Investors appeared to like the news, sending J.C. Penney shares surging about 4% in Thursday morning trading.

The company has let go about 2,200 workers at its stores and administrative offices. The latest job cuts fell heaviest at about 100 stores that posted significant sales drops over the past year, sources tell the Dallas Morning News.

Last week, the chain revealed disastrous fourth-quarter results[4], posting a record $552 million┬áloss. Store sales plunged another 28% during the quarter, signalling that shoppers continue to strongly reject the “no sales” policy put in place last year by CEO Ron Johnson.

After more than a year, the turnaround promised by Johnson, who formerly headed Apple‘s (NASDAQ:AAPL[5]) successful brick-and-mortar retail store chain, has failed to materialize. In a desperate bid to win back shoppers, the company recently began promoting sales again[6].

The new round of layoffs follow several rounds last year, including about 900 job cuts at its headquarters in Plano, Texas[7].

 

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2011/05/JC-Penny-1.jpg
  2. JCP: http://studio-5.financialcontent.com/investplace/quote?Symbol=JCP
  3. implementing yet another round of layoffs: http://www.dallasnews.com/business/retail/20130306-troubles-pile-on-in-rough-week-at-j.c.-penney.ece
  4. revealed disastrous fourth-quarter results: http://investorplace.com/2013/02/j-c-penney-shares-plummet-after-disastrous-q4/
  5. AAPL: http://studio-5.financialcontent.com/investplace/quote?Symbol=AAPL
  6. the company recently began promoting sales again: http://investorplace.com/2013/01/j-c-penney-brings-back-sales-to-win-back-customers/
  7. about 900 job cuts at its headquarters in Plano, Texas: http://investorplace.com/2012/04/j-c-penney-will-cut-900-jobs-jcp-tgt-m-jwn-gap/

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