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J.C. Penney to Cut 2,000 Jobs, Close 33 Stores

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Struggling department-store operator J.C. Penney announced it will cut 2,000 jobs and close 33 stores as it tries to get back on the path to profitability.

The news raises concerns that Penney’s holiday season sales were not what the company hoped for and that the chain needs to do even more to recover from a turnaround plan that has had disastrous results.

J.C. Penney Co., based in Plano, Texas, said earlier this month said it was pleased with its holiday results but declined to give sales figures, raising worries among Wall Street analysts about how the season actually fared.

“It was a season where they realized that they had to do more to reconnect with the customers they’ve lost,” said Brian Sozzi, CEO and chief equities strategist at Belus Capital Advisors.

The cuts announced Wednesday should save more than $65 million annually. The company will take $26 million in pretax charges in the third quarter and $17 million in future quarters. Penney has 116,000 staffers and operates more than 1,100 stores. All the job cuts are related to the store closings.

The Heat Reporter
The Heat Reporterhttp://theheatmag.com
Known in entertainment circles as "LA Dre", the Editor of The Heat Magazine works tirelessly to bring you the latest & greatest in entertainment news. He spent years in the industry & now brings some of that insider knowledge to his readers.
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