JCPenney cuts 9% at headquarters

JCPenney (NYSE:JCP) has laid off 300 workers at the company's Plano, Texas, headquarters—a 9 percent reduction in the workforce—as the retailer reorganizes to regain profitability.

"As JCPenney works to achieve its financial growth targets, it is essential that our operations align with the strategic priorities of the company," said a company spokesperson in a prepared statement. "Over the last several months, the company has been evaluating its home office structure to identify opportunities for greater simplification and higher productivity."

The company attributes some of the cuts to new systems now in place as it pursues a stronger digital strategy.

JCPenney is pursuing a three-year recovery plan, and when Marvin Ellison was named president and CEO on Aug. 1, he outlined a plan to bring in $1.2 billion in the next two years.

"We're deeply passionate about an omnichannel experience that serves customers any way that they want to be served," Ellison said during a retailing summit held by Texas A&M University in Dallas. "We want to monetize every engagement with the customer so when he or she comes in, we offer them something that gives them the ability to solve a problem, fill a need, and gets them excited about coming back."

Some staffers are being offered different jobs with lower-ranking titles or could face pay cuts, according to The Dallas Morning News. Others will be offered severance packages.

JCPenney is hardly alone in making cuts at headquarters, even as stores step up hiring for the holiday season. Walmart laid off 450 employees at its Bentonville, Arkansas, headquarters and Neiman Marcus slashed 500 to offset the costs of new stores and acquisitions.

For more:
-See this article in The Dallas Morning News
-Read this Dallas Business Journal story

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