J.C. Penney Cuts Roughly 360 Jobs, Misses Investors Expectations
J.C. Penney announced this morning that it has eliminated roughly 360 jobs at its headquarters in Plano, Texas, and at stores throughout the country. USA Today reports the news was announced after the company's most recent earnings call, where it missed analysts expectations. J.C. Penney said the job cuts were part of its efforts to get a handle on costs and streamline the company's operations. Roughly 130 positions in the company's headquarters were cut, and approximately 230 more were eliminated in regional offices and stores. The most recent round of job cuts is estimated to save the company nearly $20 million to $25 million.
Total Retail's Take: Following a strong holiday season, it appeared that J.C. Penney had righted itself and was looking to continue the momentum in 2018. However, we may need to pump the brakes on turnaround talk. Despite the aforementioned strong holiday sales, J.C. Penney reported a net loss for the full year 2017. J.C. Penney CEO Marvin Ellison said in a statement to the press: "As the company continues to make progress on its strategic framework and implement new processes and organizational efficiencies, it's imperative that we maintain a thoughtful approach to managing expenses, while effectively supporting the needs of the business."