J.C. Penney cutting 2,000 jobs, closing 33 stores

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NEW YORK — The bad news continues at J.C. Penney.

The ailing retailer announced Wednesday that it was cutting 2,000 jobs and closing 33 “under performing” stores in an effort to rein in expenses.

The store closings — listed here — are likely to be complete by early May. J.C. Penney said it expected the moves to generate $65 million in annual cost savings.

“While it’s always difficult to make a business decision that impacts our valued customers and associates, this important step addresses a strategic priority to improve the profitability of our stores and position JCPenney for future success,” J.C. Penney CEO Mike Ullman said in a statement.

Investors weren’t impressed — J.C. Penney shares slid 1.1% in after-hours trading Wednesday following the announcement.

It’s been a brutal year for J.C. Penney, its stock falling over 60% in the past 12 months. The company has been losing hundreds of millions of dollars per quarter, and is in the midst of another turnaround effort after ousting former Apple executive Ron Johnson last year.

J.C. Penney’s announcement comes after rival Macy’s announced last week that it was laying off 2,500 workers and closing five stores.

4 comments

  • Bigjohn

    This is a perfect example of how things work in our country. They hire a CEO that ruins their company, he leaves with a huge payout and leaves the carnage for the workers. It is past time workers rights make a comeback. If you do not stick up for yourselves no one else will. This is a sad commentary for the workers.

  • julie

    Well I have shopped at jcp for 40 plus years. I had a credit card. Never late not even 1 day. Always pd at least double on mo. Pmt. Had a couple other credit issues so apparently upon evaluating my cr score. For some reason they reduced my credit down to 100.00. I was furious since I have been a loyal customer for many yrs. They lost me as a customer. I’m sure along with myself they did this to other dedicated pmt on time people that fell in to a moment of hard times.

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