JCPenney cuts 2K jobs to get back on the profitability path
January 17 , 2014
JCPenney is struggling after its poor holiday season sales and needs to recover from the plan that resulted in this disaster.
The company now plans to cut 2k jobs and get rid of 33 stores in order to save over $65M every year. Penney's staffers in its 1,100 stores currently number at 116,000.
The big losses and drop in sales occurred under CEO Ron Johnson, who has now been ousted. Penney ended up bringing back CEO Mike Ullman as well as the frequent sales events, which Johnson chose to eliminate.
The company has also taken other steps (such as restoring basic merchandise), which were eliminated in an attempt to attract younger shoppers.