JCPenney has cut 300 positions at its headquarters in Plano, Texas, representing a 9% reduction of the company’s 3,400-person corporate staff. The department store retailer has joined the likes of Walmart, Dollar General, Hudson’s Bay and Neiman Marcus, all of which have instituted major corporate layoffs in recent months.
The reduction is part of the company’s restructuring efforts to become profitable again after years of financial losses.
“As JCPenney works to achieve its financial growth targets, it is essential that our operations align with the strategic priorities of the company,” said Daphne Avila, the Director of Corporate Communications and Public Relations at JCPenney, in a statement to the Dallas Morning News. “Over the last several months, the company has been evaluating its home office structure to identify opportunities for greater simplification and higher productivity. As the company continues to make progress on its strategic framework and implement new processes and efficiencies, it is imperative that we maintain a thoughtful approach to managing expenses while effectively supporting the needs of the business.”
Advertisement
In the reorganization, some employees are being offered different jobs with lower-ranking titles, while others could face pay cuts. The employees who don’t want to take new jobs will be offered severance packages, according to Avila.
Earlier in October, JCPenney CEO Marvin Ellison indicated during the Texas A&M Retailing Summit that the company has a target goal of $1.2 billion in profitability by the end of 2017, as part of a three-year recovery plan.
