J.C. Penney lays off 1,000 workers
Plano, Texas--J.C. Penney said in an 8-K filed Friday that it’s laying off a total of 1,000 employees, primarily at the company’s Texas headquarters and at a Pittsburgh customer call center it is shuttering.
J.C. Penney had about 136,000 full- and part-time workers, meaning that the layoffs impact less than 1 percent of the workforce, a company spokeswoman said. The affected employees already have been notified.
In addressing the layoffs in press release, J.C. Penney CEO Ron Johnson, the former head of retail for Apple Inc., said that simplicity was one of the “guiding principles” of J.C. Penney’s transformation and that the company would be operating “like a startup.”
Since Johnson has taken the helm, the company has instituted, among other changes, a “Fair and Square” pricing initiative, reducing the number of sales.
“In years past, we’ve motivated our customers with endless promotions and discounts, and that required a lot of process-oriented work. At the new J.C. Penney, we’re beginning to inspire customers with great merchandise, an exciting shopping environment and ‘Fair and Square’ pricing,” he said.
The layoffs are part of a plan announced in January to reduce annual expenses by $900 million by the end of 2013, including $200 million in savings at the company’s corporate headquarters, $400 million in savings in store operations and $300 in savings in advertising.